|Bid||18.50 x 4000|
|Ask||18.70 x 800|
|Day's Range||18.31 - 18.89|
|52 Week Range||14.35 - 33.85|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||17.64|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.57|
BEIJING, July 18, 2019 /PRNewswire/ -- Recently, iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, hosted its 2019 VIP Fan Carnival (the "Event") in Shanghai. The annual event is a large-scale celebrity and fan meetup gathering held by iQIYI which combines the platform services with its offline resources bring forward the ultimate entertainment experience to its users. The 7,000 fans who attended the event were selected from channels including iQIYI's VIP membership base, iQIYI Paopao's userbase, iQIYI's social media platform and other partner platforms.
In the latest trading session, iQIYI, Inc. Sponsored ADR (IQ) closed at $18.67, marking a -0.74% move from the previous day.
The Chinese streaming company iQiyi (NASDAQ:IQ) has faced a number of challenges since going public nearly a year and a half ago. The company offers both free and paid streaming service. Although it's often compared to Netflix (NASDAQ:NFLX), iQiyi is a very different company.Source: Shutterstock Of course, the comparison to Netflix has seemed much less relevant over the past year. Shares of IQ continue to trail their former high from a year ago. This has caused investors to question the company's long-term profitability.However, there's still plenty to get excited about when it comes to IQ. You just have to take the good with the bad, weighing the two using your own unique investing thesis.InvestorPlace - Stock Market News, Stock Advice & Trading Tips IQ Stock: The Good and the BadA year ago, IQ stock was trading for more than $33 a share but as of Monday, the stock opened at $19.65. Is it all downhill from here or does this just present a good buying opportunity? Here are a few things you should know before investing.The company has huge growth potential: Make no mistake, iQiyi has huge growth potential in the coming years. The company has 100 million streaming subscribers and China's streaming market is growing at a very fast pace. IQiyi offers both paid and free services, but more than 98% are paying customers. And the company plans to expand into international markets. According to IQ's founder and CEO Tim Yu Gong, there are roughly 60 million "Chinese expats" living in more than 200 countries around the world. iQiyi believes this is an opportunity to expand globally and fill a need for Chinese customers looking for a streaming service in their native language.iQiyi has differentiated itself from Netflix: Although often compared to Netflix, iQiyi has a very different business model. Netflix only offers streaming services but only 43% of IQ's first-quarter revenue came from its paid subscribers. And the company offers different tiers to its subscription model. The company also generates revenue from online advertising. And it also makes money from offering video games and content merchandising based on its original programs.Long-term challenges could stunt the company's growth: The biggest challenge iQiyi will have to overcome is China's slowing economy. People don't tend to spend money on things like movies when the economy isn't doing as well. Of course, the demand for streaming services may still be there but iQiyi does have a number of competitors to deal with. It is ranked second for online video subscription in China, coming in second to Tencent (OTCMKTS:TCHEY) Video. The video service Youku, which is owned by Alibaba (NASDAQ:BABA), comes in third. IQ's growth rate decelerated by more than 40% during the first quarter of 2019. And increasingly, businesses in China are holding back on ad spending which has the potential to hurt IQ's business as well. The Bottom Line on IQ StockThere are ways iQiyi can improve its monetization efforts and minimize costs over time. The company plans to focus on movies for the next two to three years and utilize AI to streamline its costs and effort. And the company is outpacing Alibaba's Youku in terms of growth.But it may be better to take a wait-and-see approach when it comes it IQ stock. Alibaba is a multi-billion dollar company that has dominated dozens of industries. Meanwhile, there are just too many unknown variables when it comes to iQiyi.As of this writing, Jamie Johnson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Things to Know Before Buying iQiyi Stock appeared first on InvestorPlace.
Which stock would you rather own? iQiyi (NASDAQ:IQ) or Netflix (NASDAQ:NFLX)? It's an intriguing question, even if IQ stock and NFLX stock are far from perfect counterparts.Indeed, as I noted last year, the iQiyi business model is not the same as that of Netflix. iQiyi actually is more of a hybrid between Netflix -- which streams owned or licensed high-quality content to paying subscribers -- and Alphabet (NASDAQ:GOOG,GOOGL) unit YouTube -- which monetizes user and corporate content via advertising. 30% of iQiyi revenue in the first quarter came from advertising; the figure for Netflix is essentially zero.InvestorPlace - Stock Market News, Stock Advice & Trading TipsiQiyi's subscription fees are much lower, owing to its position in a still-developing market. Its reach is smaller. Competition is tougher, too. Tencent Video, from Tencent Holdings (OTCMKTS:TCEHY) and Alibaba (NYSE:BABA) unit Youku Toudu are running neck and neck in terms of paid subscribers and viewership. Hulu, now majority owned by Disney (NYSE:DIS), is Netflix's closest pure competitor, and remains a distant second, though rivals including Disney and AT&T (NYSE:T) are on the way. * 3 Forgotten Tech Stocks Worth Remembering That said, those differences seem incorporated into the two companies' stock prices, at least by one key valuation metric. Netflix (including its net debt) currently is valued at roughly $1,000 per subscriber. Hulu's implied valuation is about $600. For iQiyi, the figure is just $140.As imperfect as is the comparison between the two companies, the gap highlights a broader split in the market. The choice between IQ and NFLX comes down to an oft-asked question these days: would you rather invest in the U.S. and its Western allies or in China? The China-U.S. SplitThe split between iQiyi stock and Netflix stock isn't surprising -- or unique. U.S. companies generally get higher valuations. Amazon.com (NASDAQ:AMZN) has higher multiples than Alibaba or JD.com (NASDAQ:JD). Exxon Mobil (NYSE:XOM) gets a higher earnings multiple than PetroChina (NYSE:PTR). Even the Hong Kong-listed Chinese units of gaming giants Wynn Resorts (NASDAQ:WYNN) and Las Vegas Sands (NYSE:LVS) historically have traded at a discount, relative to the implied value of those companies' U.S. businesses.From one standpoint, that gap makes perfect sense. China, after all, remains a Communist country, at least in name. There are more risks with doing business in that country -- and in owning shares. Investors don't entirely trust the country's economic figures, with good reason. And there's long been a fear that China's roaring growth -- even if it's lower than reported figures suggest -- is going to come an end at some point.But on the other hand, those fears seem to undersell just what an opportunity China is. For a company like iQiyi, it's worth remembering that more than half of the country's households still don't have Internet access. There may be macro cycles like anywhere else, but there is also decades' worth of potential growth as hundreds of millions of Chinese move into the middle class over time.It's not unreasonable to prefer Chinese stocks to U.S. ones at this point. With the S&P 500 at all-time highs, there's obvious risk in U.S. stocks, too. The trade war creates near-term uncertainty, but will resolve at some point. It's possible the opportunity in Chinese stocks -- which mostly are cheaper than they were a year ago -- is greater than that of the U.S. IQ Stock Still the PlayFor investors bullish on China, iQiyi stock still looks like the best play, as I wrote last month. The gap in per-subscriber valuations between iQiyi, Hulu, and Netflix might make some sense at the moment, but iQiyi might have a larger opportunity over the long haul. It's not just China, either: iQiyi has started distributing in Malaysia, and like many Chinese firms has the potential to reach across all of Southeast Asia.IQ stock looks attractive particularly for those who see the relative valuations of U.S. stocks and Chinese stocks as lopsided. In the other cases, the Chinese stocks have potentially significant issues. Alibaba has a questionable VIE structure. The Macau casinos long have been linked to money laundering and other practices. * 10 Stocks to Sell for an Economic Slowdown iQiyi, on the other hand, is cheaper simply because it's a Chinese company. That logic might well be wrong. If it is, IQ stock will have enormous upside ahead.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post iQiyi Stock Highlights the China-U.S. Divide appeared first on InvestorPlace.
With the S&P 500 entering its eleventh year since the great market meltdown of 2008, many stocks boast record high, triple-digit prices. But not all have been buoyed to the moon by the boom. For one reason or another, some companies maintain a cheap price tag. Today we will focus on finding stocks to buy in this frequently forgotten corner of the Street.Scanning stocks with a price range south of $40 reveals several themes. Some sit in out-of-favor sectors like mining and energy. Others carry toxic fundamentals and deteriorating earnings. Both areas will be sidestepped in favor of others.Today's selection of stocks to buy comprises companies that are dirt-cheap right now and also flashing buy signals. One is a recent IPO. Another is a down-on-its-luck momentum stock. And the third is a booming bank that just tagged record highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy for Less Than Book Let's take a closer look at these three cheap stocks to buy now. Yeti Holdings (YETI) Click to Enlarge Source: Thinkorswim Following its mid-January IPO, Yeti Holdings (NYSE:YETI) became a favorite stock for momentum traders. Its trending behavior was clean, and its large daily percentage moves offered plenty of profit potential. After getting a bit ahead of itself by rising 125% in three months, the stock swooned on an earnings announcement that failed to support such a rapid rise.After resetting with a 37% drop, however, buyers returned to bid YETI stock up anew. The gains since then have been glorious, and it now sits a stone's throw from the April peak. At $33, the price tag is low enough for traders seeking cheap stocks to buy now.In the short run, YETI is extended, so watch for a pullback or pause to materialize before piling in. Ally Financial (ALLY) Click to EnlargeThe second category of cheap stocks includes those that only recently went public. Since they missed the majority of the bull market they haven't had as much time to get pulled higher with everything else. Additionally, if the IPO price was set at a low cost, then traders instantly have another cheap stock to play with.Ally Financial (NYSE:ALLY) matches both criteria. After its 2014 IPO in the low $20 area, ALLY stock spent much of the next few years in a range. But recent strength has carried it to fresh record highs. Indeed, it's testing last week's all-time high as I type. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 This year's price action has been healthy with breakouts seeing strong follow through. The current high base could be setting another such upside thrust. While the looming earnings announcement is an X-factor, a pop above $31.70 should be viewed as a buying opportunity. Iqiyi (IQ) Click to Enlarge Source: ThinkorSwim Iqiyi (NASDAQ:IQ) is a Beijing-based online video platform. Following its public debut last year, IQ stock became a volatile beast experiencing massive moves higher and lower. The rally that kicked off 2019 quickly unwound into the summer, returning IQ to a lowly $16 price tag.But a recent upside breakout amid heavy volume suggests buyers may be wading back into the waters. And last week's pullback is providing a second chance to buy low for those believing a new uptrend could be in the cards. Given the messy nature of its longer-term trend, IQ is probably the most speculative idea of today's trio.Consider using support from last month at $17 as your stop loss.At the time of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 3 Dirt-Cheap Stocks to Buy for Their Massive Potential appeared first on InvestorPlace.
In the latest trading session, iQIYI, Inc. Sponsored ADR (IQ) closed at $19.91, marking a -0.4% move from the previous day.
Life as a public company has been a roller-coaster ride for Chinese streaming giant iQiyi (NASDAQ:IQ). Often dubbed the Netflix (NASDAQ:NFLX) of China, IQ stock rode that favorable Netflix comparison from an $18 IPO price in March 2018 to a $45-plus price tag by June 2018. Then, investors began to question the merits of the Netflix comparison, the sustainability of the high growth of China's streaming market, and the profitability of IQ's business model.Source: Shutterstock As those questions grew louder and louder, IQ stock dropped. Escalating trade tensions between the U.S. and China didn't help things. Nor did a major rally of the U.S. dollar or the slowing expansion of the Chinese economy.IQ stock fell from $45-plus in June 2018 to $14 in early 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks to Buy for the Second Half of 2019 iQiyi stock has since rebounded from that big selloff. Today IQ stock trades hands around $20. But investors shouldn't be fooled by the rebound. Going forward, IQ continues to face huge fundamental challenges. Until those challenges are appropriately addressed, IQ stock will not climb meaningfully.As a result, the strategy vis-a-vis IQ stock is simple. Don't buy IQ yet. Instead, wait and see how certain metrics progress. If they progress favorably, buy IQ stock on strength. If they don't progress favorably, stay away from IQ. iQiyi Has a Large Growth OpportunityiQiyi stock is supported by IQ's strong growth outlook, centered around the explosive growth of China's streaming market.Streaming is the future of global content consumption. This trend has already largely played out in America, where streaming penetration rates are north of 60% of households with broadband internet. But this trend is just starting to play out in China, where streaming penetration rates are still just roughly 35% and rapidly climbing. Further, because China has so many households with the internet( it's closing in on 1 billion internet users), this rapid streaming penetration rate expansion is fueling robust streaming market growth. China's streaming market has grown from a few million subscribers in 2014 to over 250 million subscribers last year.This growth is poised to continue, given the relatively low streaming penetration rate, along with the backdrop of continued urbanization and the digitization of China's consumer economy. Realistically, by 2025, China could have 500 million subscribers to internet video services. That represents roughly 100% growth from 2018's base.IQ is the king of this market, exiting 2018 with around 90 million subscribers, translating to roughly 35% market share. Thus, as China's streaming market continues to grow at a robust rate over the next several years, so will iQiyi's subscriber base, giving the company a big growth runway over the long run. IQ Faces Big ChallengesAlthough iQiyi stock is supported by a strong growth outlook, over the next several years, it has equally powerful challenges which could stunt its long-term profit growth.First and foremost, China's streaming market isn't anything like America's streaming market. Namely, in America, consumers are willing to pay for content. Chinese consumers aren't. Netflix charges about $10 per month per subscriber. iQiyi, meanwhile, charges about $1.50 to $2 per month, and that number has been stuck in neutral for several years. Thus, while IQ's subscriber growth potential is very large at this point , its revenue growth potential is capped by its relatively low prices.Second, even though streaming prices in China are low, the costs for content makers are not that low. As a result, its margins have been, still are, and will continue to be under intense pressure. Its gross margins have been negative for the past two years, and it's uncertain whether they will turn positive.Third, while the company does have a digital advertising business to help boost its revenues and profits, that digital ad business is growing at a sluggish rate, as the digital ad market in China is rapidly slowing. Thus, investors can't really count on the digital ad business to save the day for IQ stock. iQiyi Stock Is Appropriately Priced, Considering Its ChallengesConsidering that iQiyi has powerful growth potential but some major challenges, the valuation of IQ stock today seems fair.My best guesses for IQ are as follows. China's total streaming market will reach 500 million subscribers by 2025. iQiyi's share will be 40% or roughly 200 million subs. Its average revenue per sub will climb roughly 10% per year to $3 per month, implying around $7.2 billion of sub revenue by 2025.Its digital ad business will grow at a market-average compounded annual growth rate of about 15% into 2025, implying around $3.8 billion of revenue by 2025. Its other revenue will amount to around $2 billion, bringing its total 2025 revenue to around $13 billion.Its operating margins will rise towards 10%, roughly where Netflix's margins are today. Its operating profits will reach around $1.3 billion, which - after taxes - should translate into about $1 billion in net profits. Assuming a multiple of 20-times its forward earnings, which is around average for growth stocks, that equates to a 2024 valuation target for IQ stock of $20 billion. Discounted back by 10% per year, that implies a 2019 valuation target of about $12.4 billion.Leaving room for 15% error in the projections, that further equates to a 2019 fair valuation range for IQ stock of about $10 billion to about $14 billion. IQ stock today trades roughly in that range. As a result, the valuation of iQiyi seems fair. The Bottom Line on IQ StockDon't be fooled by the Netflix comparison. iQiyi is a different company, with drastically different average revenue per user, a smaller addressable market, less revenue potential, and lower margins.Considering these challenges, IQ stock seems fairly priced today. If the company makes progress on its average revenue per user and/or its margins, a few of the aforementioned challenges will go away, and the stock will soar higher. But, until that happens, IQ stock will ultimately be capped by its fundamental challenges.As of this writing, Luke Lango was long NFLX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post iQiyi Stock Still Faces Major Fundamental Challenges appeared first on InvestorPlace.
While the U.S. stock market is making fresh new highs, Chinese firms are not enjoying the fun. Chinese stocks remain mired in a bear market, and its tech companies are in a drastic slump. Not surprisingly, iQiyi (NASDAQ:IQ) hasn't been spared. In fact, IQ stock has lost more than half of its value over the past year.Source: Shutterstock Much of this is probably due to external factors. The trade war has scared American investors away from Chinese stocks in general. And China's economy is showing signs of strain. But iQiyi has some concerns of its own that could keep the stock in the doghouse in coming months. Is iQiyi To Fault For Its Massive Stock Price Losses?Chinese stocks have gotten absolutely hammered over the past year. There are 39 Chinese firms with a market cap over $2 billion that have been listed in the U.S. for at least a year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half Of these, 24 (well more than half ) have lost at least 20% of their value over the past year. Only four out of the 39 have posted a positive return over the past year.IQ stock has been the biggest loser of the bunch, however, shedding 59 percent of its value over the past 12 months. Other notable peers have performed almost as bad, however.Weibo (NASDAQ:WB) is down 58 percent. Sina (NASDAQ:SINA) has plunged 52 percent. And even internet giant Baidu (NASDAQ:BIDU) hasn't been spared; it has knifed 55 percent lower. So IQ stock, while being the worst of a sorry bunch, is hardly an overwhelming outlier. iQiyi's Recent TumbleLike most tech stocks, IQ plummeted to end 2018. Shares recovered to start 2019, but that recent optimism faded in March. Since then, IQ stock has been going straight down again.In addition to the general concerns about the trade war and the health of the Chinese economy, iQiyi is facing two more direct concerns.The first of these is increased government regulation. The China National Radio and TV Administration "NRTA" recently issued more strict guidelines for China's major video players. These will sharply limit the amount of historical dramas that these companies can produce, in relation to dramas based on modern settings.The Chinese government suggested that the video companies were promoting false and harmful views of China's past with these dramas.While this may sound like a silly issue to western investors, it is something to take seriously. Even the most hyper-capitalist of companies must play by a different set of rules in China than they would in places that have more free speech protections.Additionally, it's worth noting that various other Chinese media companies listed in the U.S. have gotten in trouble with the Chinese government for concerns ranging from piracy to sexual content previously, causing sizable share price declines. The current issue with historical dramas will probably blow over. But IQ stock will always face the headwind of the possibility of a government content crackdown at any point.iQiyi also issued more than $1 billion in convertible bonds in March. At the time, it appeared to be a success for IQ stock. They raised money at a lower interest rate and at a less dilutive price than expected. It also represented the second largest convertible bond offering by a Chinese firm in the United States to date.Still, it also appears to have reminded investors that iQiyi has a troubling balance sheet and no plans to make profits anytime soon. When Will iQiyi's Business Model Turn The Corner?It's popular to refer to iQiyi as the Netflix (NASDAQ:NFLX) of China, but this analogy doesn't fully work. For one thing, Netflix relies almost exclusively on subscription revenues. iQiyi, by contrast, gets less than half of its revenues from paid subscriptions. At its price points of $3/month for monthly subscriptions and $2/month for annual subscriptions, iQiyi needs a whole lot of subs to turn a profit.Notably, iQiyi doesn't have the first mover advantage that Netflix did. Already, the Chinese market has three major players. iQiyi has more than 500 million monthly users (not subs), but so does Tencent's offering. Alibaba's (NYSE:BABA) Youku has more than 400 million as well.They all offer competitively subscriptions at super low price points. This makes it difficult for iQiyi to simply copy the Netflix model of raising the subscription price frequently.On the other hand, iQiyi shares a major similarity with Spotify (NYSE:SPOT) rather than Netflix. This is that it has a robust free option, and generates substantial advertising revenues from it.iQiyi, like Spotify, hopes free users will upgrade over time, but it's not a completely closed community like Netflix. Advertising, though down as a percentage of the pie, still made up 43% of iQiyi's revenues in 2018, with subscriptions at just 37%.The idea is that iQiyi will eventually have enough original content to be able to drive far more subscription revenue. At this point, iQiyi is spending nearly as much on content costs as it brings in in revenue. That's obviously not a sustainable model.The question is, will iQiyi be able to reach an inflection point where it starts earning a profit on its content? The fact that two well-funded rivals in Alibaba and Tencent oppose them make it very difficult to either lock up the market or raise prices aggressively. IQ Stock VerdictIf iQiyi can stay the course for quite a few years, it can become a huge winner. It trades far cheaper than Netflix and other streaming companies on a Price/Sales basis. The combination of aggressive revenue growth and an expanding valuation multiple could make IQ stock a home run.But it will be many years, if ever, until iQiyi reaches that point. Right now, the business is losing gushers of money. That's problematic as it faces entrenched rivals. How long will investors fund iQiyi's money-burning content strategy? If the company can keep adding subscribers quickly, IQ stock will eventually recover. But there's a decent chance it will continue to struggle for a long time to come.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Right Now the Future Looks Pretty Bleak for IQ Stock appeared first on InvestorPlace.
BEIJING, July 5, 2019 /PRNewswire/ -- Since its debut on May 25, 2019, The Big Band (the "Show"), a variety show broadcasted and produced by iQIYI, an innovative market-leading entertainment service in China, and MEWE, has been met with great acclaim by industry professionals and audiences for its originality, its impact on the revival of China's indie music and bands as well as immersive and interactive viewing experience that's achieved through the application of innovative technologies such as interactive video features and VR. Set against a mission to seek out the best rock bands in China, The Big Band is a music variety show that brings together 31 top Chinese bands, some of which come from China's biggest indie labels – Modern Sky, Taihe Music, Caotai Music and Street Voice, to compete in various stages and battles in order to earn a spot in the final "Top 5".
Zacks.com featured highlights include: Napco Security Technologies, iQIYI, Village Farms International, Plantronics and Aerojet Rocketdyne
Here we pick five top-ranked media stocks that are expected to benefit from higher ad dollar spending, rapid proliferation of skinny bundles and investment in quality content in 2H19.
For investors that have held iQiyi Inc (NASDAQ:IQ) shares since the beginning of the year, it has been a test of patience. After a parabolic start to the first few months of the year, IQ stock painfully gave back those gains.Source: Shutterstock But in the past week, iQiyi stock started turning its wheels. A positive turn in trade talks between the U.S. and China have contributed to the traction. Overall though, it seems the market hasn't given IQ a fair shake despite the change in geopolitical tenor.That seems to be changing now.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith a very positive first quarter with new milestones being hit since then, IQ stock finally has legs. Taking Another Look at Q1 Numbers of IQ StockAfter a selloff that began in March, iQiyi stock recently demonstrated a return to strength. Additionally, another look at the fundamentals shows that the selloff was overdone to begin with. * 7 F-Rated Stocks to Sell for Summer Revenue growth was in the high double digits, posting a 43% year-over-year increase. The most significant driver here was continued strength in the membership business. Their library of premium content remains popular and thus, web traffic keeps on diverting their way. IQ has also successfully diversified its revenue streams by leveraging the valuable intellectual property of their original content.Let's just say that Netflix (NASDAQ:NFLX) isn't the only company to know the value of owning IP. Like our own streaming giant, iQiyi understands critical role IP plays in the sustainability of a TV streaming subscriber model.As Dr. Yu Gong, CEO of iQiyi, stated:We further strengthened our platform and continued to take the lead in China's internet video streaming industry in terms of various 3rd-party tracking metrics. Our strategy remains focused on producing high quality original content and refining our IP-centered content ecosystem which will be the key drivers for our future growth.Thanks to their investments in content and growth, IQ is extremely well-positioned to maintain its leadership position in the future. And that should subsequently lift iQiyi stock on a longer-term basis. IQ Keeps Adding SubscribersLate in June, IQ announced that the number of its total subscribing members surpassed 100 million. This is an important milestone for iQiyi stock. It demonstrates that IQ too is a leader in China's burgeoning online video-streaming industry.The subscription business model so popular stateside has also proven popular in China as well. Naturally, then, this model has experienced substantial subscriber growth.Q1 numbers showed that total subscribing members jumped 58% from March 31, 2018 to March 31, 2019. They're dealing in real numbers here as well: 61.3 million subscribers to 96.8 million. In a few months' time since reporting quarterly figures, that growth has clearly continued.IQ has made strides in optimizing the user experience via tinkering with their platform: it's a strategy not unlike Netflix's, which has worked remarkably well for them. Furthermore, investing in content that viewers want to see has helped them maintain a great record in converting from free to paid membership. The Bottom Line on IQ StockGlobal consumers seem to have a lot in common, despite varying tastes in content. Fundamentally, viewers, whether Chinese or South American or American, are willing to pay for high-quality content. Even better, they're hungry for more.That provides an attractive market both in terms of wealth and size for IQ to capture. So far, it's been very successful and IQ stock has benefited.Therefore, as more milestones are met, IQ stock should see its position as a leader in online entertainment solidify.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks to Buy and Hold Forever * 10 Small-Cap Stocks That Look Like Bargains * 10 Names That Are Screaming Stocks to Buy The post IQ Stock Hitting 100 Million Subscribers Is Just the Beginning appeared first on InvestorPlace.
The BUPT Automation School team wins first place by achieving a multimodal identification technology accuracy rate of 91.14% BEIJING , July 1, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" ...
Iqiyi (NASDAQ:IQ) has been a public company for 15 months. In this period, IQ stock has gone as high as $40 and as low as $15. Trading right at its March 2018 IPO price of $18, investors continue to wonder in which direction it's headed next. Source: Shutterstock I'm a firm believer that you can often buy IPO shares for less than their pricing within 12-24 months of a stock going public. IQ stock is no different.It was already available at sub-$18 prices last December. Barring some excellent news, it's likely to test $15 between now and the end of the year. The wildcard is a trade deal. If that happens, I doubt you'll be able to pick up iQiyi stock anywhere near $15. More likely it heads into the mid-$20s on the news.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Top Small-Cap Stocks Of 2019 When I last wrote about IQ stock at the end of May, I recommended to investors that they not buy iQiyi until it drops below $18. I still feel that way. Here's why. The Risk/Reward Has Got to Be RightAlthough I like the fact that the video-streaming service has four revenue streams: membership services, advertising, content distribution, and live broadcasting/online games, the fact that it lost $270 million in the first quarter compared to $59 million a year earlier suggests the risk of owning IQ stock is high. If you're going to own it, you need to be compensated for taking on the extra risk compared to buying Netflix (NASDAQ:NFLX) and calling it a day. Since it doesn't pay a dividend, that compensation has to come by way of a lower share price. As I explained at the end of May, the company's membership services accounted for 49% of its Q1 2019 revenue with advertising adding another 30% and content distribution, live broadcasting, and online games chipping in the remaining 21%. While it's got a nice balance of revenue streams, membership services are clearly the one that will drive iQiyi to profitability. So, in addition to being rewarded for taking on additional risk, investors need to evaluate whether the 64% increase in membership services revenue in the first quarter has the company headed in the right direction. Is it earning more revenue per paying customer?In Q1 2019, iQiyi had $513.4 million in membership services revenue from 95.4 million paying members. That's $5.38 for each paying member. In Q1 2018, it had $334.0 million in membership services revenue from approximately 60.4 million paying members for an average of $5.53 a customer.The fact that it has fallen slightly isn't a problem. As it continues to grow the number of paying members, the fees it charges will remain steady to attract new members and retain existing ones. Then, like Netflix, it will raise the amount it charges customers once it's got them hooked. As long as it's growing members by 60% each quarter, it will ultimately lead to consistent profitability. The Bottom Line on IQ StockAnytime you consider buying a money-losing stock; you're taking a gamble. Heck, anytime you buy a moneymaker, you're taking a risk.If you're an aggressive investor, I might buy at $18, and buy more should it drop to $15 or below. If you're risk averse, I'm not sure you want to be buying stocks of companies that aren't making money. Investing is tough enough without a margin of safety. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post If You Have the Stomach, $15 Is the Buy Zone for IQ Stock appeared first on InvestorPlace.
U.S. stock futures are trading higher this morning to extend yesterday's rally.Heading into the open, futures on the Dow Jones Industrial Average are up 0.06%, and S&P 500 futures are higher by 0.11%. Nasdaq-100 futures have added 0.31%.In the options pits, put trading sank like a stone yesterday reflecting a quick departure of fear in the market. Total volume ended well below average with around 16 million calls and 11.8 million puts changing hands on the session. The sharp drop in put demand drove the CBOE single-session equity put/call volume ratio down to 0.58. At the same time, the 10-day moving average dropped to a fresh two-month low at 0.60.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions trading was hopping in these the following stocks. Nike (NYSE:NKE) saw renewed options interest ahead of last night's earnings announcement. Boeing (NYSE:BA) shares fell almost 3% after U.S. authorities uncovered another issue with the company's 737 MAX jet. Finally, Iqiyi Inc (NASDAQ:IQ) was flooded with call demand after the Beijing-based internet company scored an award at an industry event in China.Let's take a closer look: Nike (NKE)Last night's earnings announcement from Nike was much ado about nothing. At least, that's the message from the stock's reaction. After a quick bout of volatility following the release, NKE stock is set to open unchanged this morning. For the quarter, Nike earned 62 cents a share on revenue of $10.18 billion. Analysts were calling for earnings of 66 cents a share on $10.16 in revenue.Nike's price chart has traveled a circuitous route to nowhere for the past five months. The long-term trend continues to point higher, but the short- and intermediate-term trends have downshifted to neutral. Until NKE can finally depart from the sloppy trading range, trend traders will likely find better trades elsewhere. * 10 Small-Cap Stocks That Look Like Bargains The snoozer of a reaction should bring big profits to option sellers at the open. Premiums were anticipating a move of $3.95 or 4.7%, so options prices should rapidly recede right out of the gate. Ahead of the release, puts outpaced calls by a slim margin. Total activity soared to 689% of the average daily volume, with 127,382 contracts traded. Boeing (BA)Just when you thought it was safe to wade back into the waters, another negative news headline drops for Boeing. Shares of the aerospace juggernaut opened 2% lower Thursday after the Federal Aviation Administration discovered a new flaw in the company's 737 MAX jet. The company will have to solve the issue before its grounded airplanes can return to service.You can find more details on the story here.The timing of the find couldn't have been worse for traders. With this month's upside breakout, BA stock was looking its healthiest since February. The recent high base was on the cusp of breaking out just yesterday and likely sucked in a ton of bulls that are now trapped with Thursday's down gap. The whole fakeout has cast a pall over the stock and suggests would-be buyers should steer clear for now.On the options trading front, we saw a mad dash for put protection throughout the day. Total activity jumped to 228% of the average daily volume with 154,783 contracts traded. Puts accounted for 57% of the session's sum.The increased demand drove implied volatility up to 29%, which places it at the 31st percentile of its one-year range. Premiums are baking in daily moves of $6.70 or 1.8%. iQiyi (IQ)IQiyi shares rocketed 10% higher after the online video platform provider won the "Mobile Internet Innovation Pioneer Award" at the Mobile World Congress event in Shanghai, China. For the full rundown, see here.The rally breathed new life into the sagging stock, pushing it to a fresh six-week high. Most importantly, it halted IQ stock's downtrend and breached multiple resistance zones, including the oft-watched 50-day moving average. Bullish trades are finally back on the menu. * 7 Stocks on Sale the Insiders Are Buying On the options trading front, traders went cuckoo for call options. Activity swelled to 629% of the average daily volume, with 107,013 total contracts traded; 78% of the trading came from call options alone.Implied volatility jumped to 56% pushing it to the 16th percentile of its one-year range. Premiums are now pricing in daily moves of 71 cents or 3.5%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Top Small-Cap Stocks Of 2019 * Critical Levels to Watch in 7 Marijuana Stocks * 5 Smaller Cloud Stocks That Have Plenty of Potential Compare Brokers The post Friday's Vital Data: Nike, Boeing and iQiyi appeared first on InvestorPlace.
Once the bulls had to push back or risk being rolled over, they pushed back. Stocks logged their first daily win in five sessions on Thursday, with the S&P 500's 0.38% advance solidifying a market-wide turnaround effort. It's still not rock-solid, but it's a start.Source: Allan Ajifo via Wikimedia (Modified)Ford Motor (NYSE:F) did a fair amount of the heavy lifting, up nearly 3% mostly on the heels of news that it would be shuttering several of its European facilities, where it struggles to turn a profit. However, iQiyi (NASDAQ:IQ) logged a much bigger gain jumping more than 10%. The so-called "Netflix (NASDAQ:NFLX) of China" announced it would be partnering with China Unicom to develop 5G terminal devices.Nokia (NYSE:NOK) was the only notable to name to lose ground, though its 1% setback wasn't nearly enough to infect other names. The telecom-tech giant continues to grapple with a technical headwind.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Names That Are Screaming Stocks to Buy That headwind isn't reliable enough to make NOK a top-notch bearish bet though. In fact, it's the stock charts of Huntington Bancshares (NASDAQ:HBAN), Goldman Sachs Group (NYSE:GS) and Centurylink (NYSE:CTL) that look best positioned for major moves in the foreseeable future. Goldman Sachs Group (GS)Goldman Sachs Group isn't a name that has been on many radars of late. It is a bank, but isn't. It's got a new CEO, but it's business-as-usual. Most investors appear to be taking a wait-and-see approach, and have shelved it indefinitely until there's a clear reason to take it off the shelf and make a call.It may be time to dust it off and take a look though. GS stock has slowly and quietly tiptoed toward a major breakout point. It has hinted at this test before, to no avail. This time is different, however, and one or two more good days could change the paradigm in a big way. Click to Enlarge * The resistance line in question is plotted in yellow on both stock charts. It tags all the major peaks going back to the early part of last year. * Simultaneously, Goldman Sachs is testing the white 200-day moving average line as a ceiling. It failed to clear it in April, but it is getting another shot at it right now. * There's more to the current turbulence around $198 than readily meets the eye. There's also a major Fibonacci retracement line near that level. If Goldman shares can get cleanly past it, there's little else to stand in its way. Centurylink (CTL)A week and a half ago, we pointed out Centurylink shares were in rebound mode. Falling resistance lines were being broken, and the stock was working on a break above the pivotal 50-day moving average line.CTL shares punched through that ceiling the same day, and though they fell back under it again a few days later, the bulls pushed it back into place on Thursday. In fact, the buyers shoved CenturyLink stock to its highest high and highest close in weeks. That level of persistence is encouraging, though a new technical ceiling has come into view. * 10 Defense Stocks to Buy During Rising Geopolitical Tensions Click to Enlarge * With the purple 50-day moving average line in the rearview mirror again, CTL is within striking distance of the gray 100-day moving average line. * Zooming out to the weekly chart we can see the Chaikin line has not only crossed above zero, but we have a new MACD buy signal in place. The weekly view also better illustrates how CenturyLink is breaking down previous resistance levels. * Although the bigger-picture momentum is impressive, near-term volatility can be expected. Even if the 100-day line is hurdled, it may not necessarily stay hurdled. Huntington Bancshares (HBAN)Finally, Huntington Bancshares -- like most bank stocks -- have been pressured lower since late last year on concerns that falling interest rates would sap bank profitability. Most banking names have since served up glimmers of hope, though only erratically. It would be easy to not get excited about any bullish thrusts, instead, interpreting them as headfakes.The headfakes HBAN is throwing, however, are clearly different than the ones most of its banking peers are making. Not unlike Goldman Sachs, HBAN is close to punching past a huge technical resistance level, and it's doing so with a significant amount of bullish backing. Click to Enlarge * The key to a breakout is a move above the $13.70 area. The resistance line that connects all the recent peaks is there, plotted in yellow on both stock charts. And, like GS, that's also where the white 200-day moving average line is … the same line that quelled February's rally. * Noteworthy is the amount of bullish volume that has materialized in just the past few days. It suggests there are a lot of would-be bulls waiting in the wings. * It would need a lot of marketwide help to get there, but if Huntington Bancshares can break out of their converging wedge, the most established technical ceiling is last year's double-top around $16.56.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 8 Tech Stocks of 2019 (So Far) * 10 Defense Stocks to Buy During Rising Geopolitical Tensions * The 7 Best ETFs to Own for a 5G Boom Compare Brokers The post 3 Big Stock Charts for Friday: Huntington Bancshares, Centurylink and Goldman Sachs appeared first on InvestorPlace.
BEIJING , June 27, 2019 /PRNewswire/ -- The well-known technology industry event, Mobile World Congress ("MWC"), began its 2019 Shanghai event on June 26 th . During the event, the Central Radio ...
Chinese streaming giant iQiyi stock soaring after crossing the 100 million subscriber mark. That's a 58% increase from a year ago. Yahoo Finance's Dan Howley joins Seana Smith.