IQ - iQIYI, Inc.
19.10 -0.01 (-0.05%)
After hours: 5:19PM EST
| Previous Close | 19.15 |
| Open | 19.03 |
| Bid | 19.00 x 4000 |
| Ask | 19.18 x 900 |
| Day's Range | 18.87 - 19.31 |
| 52 Week Range | 14.35 - 29.18 |
| Volume | 4,629,493 |
| Avg. Volume | 6,313,336 |
| Market Cap | 15.405B |
| Beta (3Y Monthly) | N/A |
| PE Ratio (TTM) | 18.03 |
| EPS (TTM) | 1.06 |
| Earnings Date | Nov 6, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 19.94 |
- PR Newswire
iQIYI Original Productions "The Thunder", "The Golden Eyes" and "The Rap of China" Win Multiple Awards at the 2019 Chinese American Film Festival and Chinese American TV Festival
BEIJING , Nov. 12, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China , recently won multiple ...
- InvestorPlace
Be Careful With the Recent Rally in iQiyi Stock
Shares of beaten and bruised Chinese streaming giant iQiyi (NASDAQ:IQ) have bounced back recently, rallying more than 20% over the past month to four-month highs thanks to easing U.S.-China trade tensions, rebounding Chinese economic activity, and better-than-expected third-quarter profit numbers.Source: NYC Russ / Shutterstock.com But, when it comes to the recent rally in IQ stock, investors should proceed with caution.Sure, things are getting better for iQiyi. Long story short, the economic fundamentals in China should improve over the next few quarters, and this will create a rising tide which lifts all boats, iQiyi included. At the same time, iQiyi's margins -- which have been tumbling for several quarters -- are showing signs of stabilizing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, things aren't getting that much better. iQiyi's revenue growth trajectory remains challenged by a lack of fiscal demand for streaming content in China. Heightened competition in the digital ad market also presents a risk to sustained revenue growth at scale. Content costs are still swelling, as are research and development costs. Margins are still hugely negative, and dropping. Profits are still a long ways out -- and the pathway to sustainable profits lacks clarity.All in all, there are major problems underlying iQiyi stock, meaning that recent strength in the stock may not be all that sustainable. iQiyi's Fundamentals Are ImprovingThe fundamentals underlying IQ stock have improved substantially over the past few months.It all started a month ago, when it became clear that the vicious U.S.-China trade war cycle was coming to an end. Specifically, thanks to both sides agreeing to work on a series of mini trade deals, investors broadly came to the conclusion that U.S.-China trade tensions were in the early innings of permanent deescalation. If true, that means that the biggest headwind to China's economy is set to ease going forward, and easing therein should drive a rebound in China's economic activity.Naturally, this rebound will provide a tailwind for iQiyi's revenue growth trajectory, which has flattened out over the past quarters alongside the Chinese economy. Of note, businesses should spend more on advertising, providing a boost to the digital ad market, from which iQiyi draws a big source of revenues. Also, consumers should be more willing to pay up for streaming content, which should provide a nice lift to iQiyi's subscription revenues.At the same time, iQiyi recently reported third quarter profit numbers which topped expectations. Importantly, operating margins only dropped 80 basis points year-over-year in the quarter, versus several hundred basis points of compression in each of the past few quarters. The implication is that margins are finally starting to stabilize, and that's a positive development in this company's pathway to profitability.Big picture: iQiyi's micro and macro fundamentals have simultaneously improved over the past month, and this improvement is why IQ stock has rattled off a 20%-plus gain over that stretch. iQiyi Stock Still Has ProblemsAlthough the fundamentals here have improved, they still aren't good, and that means there is reason for caution when it comes to IQ stock.iQiyi's revenue growth trajectory is rapidly decelerating. Sure, China economic activity may rebound. But, at the current moment, we are looking at a company that has gone from 43% revenue growth in Q1, to 15% revenue growth in Q2, to 7% revenue growth in Q3, to a projected 1% rise in revenues in Q4. Behind this slowdown, the ad business is tumbling, while the subscription business is adding users, but at very low price points.A rebound in Chinese economic activity doesn't guarantee much help on either front. Even if businesses do spend more on ads, the competitive landscape in China's digital ad market is so intense that iQiyi may not win over many of those new ad dollars. Further, China's consumers have remained largely healthy despite the economic slowdown, so if they weren't willing to pay up for iQiyi content over the past few months, they likely won't pay up anytime soon, either.On the margin front, content costs are running higher because good content is needed to attract new subscribers and keep old ones, while R&D costs are also running higher thanks to increased headcount growth. Because these costs continue to swell against the backdrop of flattening revenues, negative profit margins are heading even lower.Until the revenue growth trajectory turns around -- and there's no telling when it will -- there is a tremendous lack of visibility as to when iQiyi's margins will ever improve, let alone peak into positive territory. So long as this remains the case, it will be tough for any strength in IQ stock to find fundamental support. Bottom Line on IQ StockIQ stock has shown signs of strength of recently. But, this strength appears to based on hope, not fundamentals. The fundamentals here remain weak, dominated by the notion that iQiyi is a slowing growth company running huge losses, without a clear pathway to ever producing a profit.Does a stock with those fundamentals deserve to trade at 3.5-times trailing sales? No. So, when it comes it IQ stock, proceed with caution.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Be Careful With the Recent Rally in iQiyi Stock appeared first on InvestorPlace.
- InvestorPlace
IQ Stock Is Heating up Just as the Trade War Appears to Be Cooling
If the trade war with China is about to end with a whimper, Iqiyi (NASDAQ:IQ) looks cheap. IQ stock rose 6% on Nov. 6.Source: NYC Russ / Shutterstock.com The Chinese video streaming company was helped both by a quarterly report that was less bad than feared and word that China is ready to bury the trade hatchet with the U.S.Iqiyi is a partial spin-off of Baidu (NASDAQ:BIDU), the Chinese search engine company. It lost $4.34 per share on revenue of $1 billion during the September quarter but had 30% more subscribers than a year ago. The company also signed a deal to deliver its content in Malaysia, which has a large Chinese-speaking population.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result, the stock rose 6.53% in pre-market trade to open November 7 at $18.60, a market cap of nearly $12.4 billion. Baidu shares also rose, by 4%. Is IQ Stock Cheap?Reporting on the quarter varied depending on what reporters were looking at. Variety, an entertainment magazine, emphasized the deepening losses. Financial reporters at Marketwatch emphasized that the losses were less than expected. * 7 Stocks to Sell Before They Roll Over In fact, the losses were just about in line with the company's 30% subscriber growth rate.Shares of all Chinese stocks have been depressed during the trade war. IQiyi (pronounced ee-KWI-kwee) stock is little changed from where it was when the year started.But the company has changed. It now has about 105 million paying subscribers, almost entirely in China. This compares favorably with Netflix' (NASDAQ:NFLX) 97.6 million subscribers outside the U.S.IQiyi, however, is much cheaper, just $2-3 per month, and its programming is supported by advertising. Netflix, which takes no advertising, is only in China thanks to a 2017 partnership with IQiyi.While IQ has been growing its subscriber base, advertising revenue was down 14% year-over-year in the latest quarterly report. The company blamed this on the local economy and intense competition. IQ's total subscriber count runs neck-and-neck with that of Tencent Holdings (OTCMKTS:TCEHY) and Alibaba Group Holding (NASDAQ:BABA).In comparison to U.S. tech companies, however, IQ is dirt cheap. Its market cap is about three times its revenue, the subscriber count continues to rise, and long-term debt is low. If trade peace is more than just a rumor, IQ stock should take off. IQ ProspectsIQ is interesting because of its differences with Netflix, not its similarities.IQiyi seeks to completely monetize both its talent and its programming. Netflix merely signs production and delivery agreements with producers. IQ develops and owns its own shows, it advertises against them, and it sponsors concerts to develop talent.More important, IQiyi is primarily a mobile service. It's designed to deliver short bursts of fun to Chinese students and workers during their commutes and work breaks. Netflix, by contrast, is built around TVs and long-form evening programming.The hope of IQ bulls is that the end of the trade war will spark the economy, especially the consumer side. That would deliver more advertising revenue, which is the part of the equation that's lagging. The Bottom Line on IQ StockI counseled patience on buying IQ last spring, and such patience has been rewarded. Shares have fallen 25% since March.I have also emphasized its differences with Netflix, but there are similarities. IQiyi has high initial costs for programming detective shows, romantic comedies and costume dramas. These are covered by convertible notes instead of pure debt. This means the upside in IQ stock is limited. Big gains will move people to turn bonds into stock.Still, if you believe in China, in the Chinese market, and in Chinese ingenuity, IQ stock may be one of the best ways to play that faith. It's a long-term speculative play for young investors who want to diversify outside the U.S.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in BABA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post IQ Stock Is Heating up Just as the Trade War Appears to Be Cooling appeared first on InvestorPlace.
- Zacks
iQIYI (IQ) Q3 Loss Narrower Than Expected, Revenues Rise Y/Y
iQIYI's (IQ) third-quarter 2019 results benefit from strong subscriber growth. However, deferred content launches and decline in online advertising services revenues remain dampeners.
- MarketWatch
U.S. iQiyi stock rises on narrower-than-expected loss
U.S. shares of iQiyi Inc. rose in the extended session Wednesday after the Chinese online entertainment company reported a narrower-than-expected loss for the quarter. iQiyi ADRs rose 5% after hours, following a 1.9% decline in the regular session to close at $17.46. The company reported a third-quarter loss of $516 million, or 70 cents a share. Revenue rose 7% to $1 billion from the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 71 cents on revenue of $1.04 billion. iQiyi expects fourth-quarter revenue of $960 million to $1.02 billion, while analysts had forecast on revenue of $1.01 billion.
- GlobeNewswire
iQIYI Announces Third quarter 2019 Financial Results
BEIJING, Nov. 06, 2019 -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced its unaudited.
- PR Newswire
iQIYI Announces Strategic Partnership with Malaysia's Leading Media Brand Astro, Expanding Entertainment Services for Overseas Markets
KUALA LUMPUR, Malaysia, Nov. 6, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, announced today that it has reached a strategic partnership with Astro, Malaysia's major pay-television service provider. Based on the global operations of the iQIYI App (the "App"), iQIYI will be cooperating with Astro on marketing and localization of iQIYI's services. Through iQIYI's middle-end for technology, products and content, Astro will be able to benefit from iQIYI's operational capacity; while iQIYI can reach local users through Astro's strong media and marketing networks.
- Zacks
iQIYI (IQ) Set to Report Q3 Earnings: What's in the Cards?
iQIYI's (IQ) third-quarter 2019 results are likely to reflect a strong content portfolio and solid demand for company-produced drama series, original movies and variety shows.
- PR Newswire
iQIYI Releases New Dataset that Enhances Facial Recognition Technology, Research Paper on the Subject Accepted by ICCV
BEIJING , Oct. 31, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China , today announced that ...
- PR Newswire
iQIYI Releases Season 2 of Original Animation Series "Beyond the Ocean", Boosting Production Capabilities by Engaging Gaming and Film Production Teams
BEIJING, Oct. 29, 2019 /PRNewswire/ -- On October 24, iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, released the second season of original 3D naval fantasy adventure animation series Beyond the Ocean (the "Animation"). The new season also employs motion capture technology and a game CG production team to ensure that the animation quality is as smooth and real as possible. Adapted from the popular book series of the same name, the Animation received widespread praise from fans of the original novel and animation fans upon the release of its first season.
- InvestorPlace
The One Thing iQiyi Stock Needs to Return to Glory
When iQiyi (NASDAQ:IQ) burst onto the scene, it earned the nickname of "the Netflix (NASDAQ:NFLX) of China." So we know it operates in a viable segment that has years of runway ahead of it. IQ stock soared to $46 per share in June of 2018, but it has since fallen from grace and is now mired under $20 and cannot regain its momentum.Source: NYC Russ / Shutterstock.com The general malaise created by the economic war between the U.S. and China has crippled all China-related stocks like IQ. So the fall from grace may not reflect a deterioration in its fundamental opportunity. In fact, year-to-date although IQ is down 13%, it is doing better than NFLX stock, which is down 18% for the same period. What IQ Stock Needs for a ComebackSo there is a possible comeback for IQ stock. But several levels of resistance stand in the way of prior glory. What management says soon will be pivotal. To that, IQ gained some momentum last week. But technically, it is approaching heavy resistance. The zone around $18 per share has been important for at least a year. And in September, the stock failed exactly there and almost retested the Christmas correction lows from 2018. So, clearly, it's up to the bulls to prove that they can overcome it this time.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks to Buy and Hold Forever The first order of business for the buyers is to keep the iQyi stock price above $17 per share to retain control of the price action. This will allow them to maintain the higher-low trend while they attack the resistance neckline and this won't be easy. The 12-month point of control is near $18.50 and these usually are strong resistance on the way up. This is where bulls and bears have agreed to fight it out hard the most in the past 12 months.Neither side will want to let it go easily.But it's not all about technicals. IQ management will have the stage early November and they can tell their fundamental story. The one thing that they must do is meet or beat the expectations but most importantly guide higher going forward. Wall Street has no patience for timid forecasts. They need an emphatically strong story for the next quarter. Nevertheless, the short-term reaction to earnings events is almost completely binary. So from a trading perspective, earnings events have a lot of guesswork.So investors in IQ stock for the next two weeks have to be nimble and tactical. The improved rhetoric from the U.S. and China economic war has helped the stock stabilize a bit. But it's not out of the woods yet because nothing has really changed. The negotiations are still ongoing and there is talk of a deal. But there's nothing in writing yet so it can all fall apart with one headline. This will affect the momentum that IQ stock and it's Chinese cohorts.So conviction is medium at best in any short-term IQ trade. Investors need to remember that headlines cut both ways. If they finally actually ink a deal between the U.S. and China, all China-based stocks will soar, and IQ stock has a lot of ground to make up. * 7 Defense Stocks to Buy to Fortify Your Portfolio If by any chance the bulls are able to overcome the current short-term resistance, they will then have to contend with an even bigger failure level at $20 per share. This is an even more pronounced pivot level, so it's even harder than $18 a share. The options market may provide a safer way to bet on IQ for the next few weeks. Emphasis on the word bet because given the headline risk and the earnings event there's a lot of guesswork involved in trading IQ stock.This is not the same as to say that fundamentals don't matter, because they do.However for the time being, the strategy is hostage to external factors. Clearly IQ provides a service that is in demand. It is in fact dubbed the Netflix of China, but it also still needs to grow into its valuation. Actual metrics are murky, so the chart price action is more reliable from the trading perspective. They say that price is truth and it applies to this case during this volatile period. Check the emotions at the door and trade the tape in play.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 AI Stocks to Buy to Profit from the Recent Tech Correction * 5 IPO Stocks With Lockup Expiration Dates Around the Corner * 3 Clean Energy ETFs for a Brighter Future The post The One Thing iQiyi Stock Needs to Return to Glory appeared first on InvestorPlace.
- InvestorPlace
3 Chinese Stocks to Buy If the Trade War Wraps Up
Many investors believe that the ongoing U.S.-China trade war is pressuring Chinese stocks. If that's the case, there should be no shortage of stocks to buy on hopes the dispute is resolved.To be honest, I'm somewhat skeptical that the trade war has had the impact some investors believe. It's true that after the dispute began last year, Chinese stocks fell sharply. But U.S. stocks declined as well during the fourth quarter. It was a "risk-off" market, and Chinese stocks have more than their fair share of risk. Meanwhile, the market generally does have a long-term focus, and few investors believe that the trade war, and its effects, will last forever.That said, there no doubt has been some impact on Chinese equities. Trade factors are pressuring the domestic economy, for instance. So it's certainly possible that a trade deal could lead directly to a rally in Chinese stocks, even if that rally might not be quite as significant as some bulls believe.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe next step is finding the best stocks to buy when the trade war is eventually resolved. These three stocks look like the best choices at the moment. * 7 Stocks to Buy With 100% Upside Potential One is a high-risk bet worth taking, and thus precisely the kind of bet aggressive investors should take on hopes of a deal. The other two strike a nice balance between quality and upside: strong enough to manage through until a trade war resolution is reached, and with enough growth potential that a resolution might materially change the long-term outlook. All three look like strong picks for China bulls. Chinese Stocks to Buy: iQiyi (IQ)There are three core reasons why streaming video play iQiyi (NASDAQ:IQ) is a smart choice for investors betting on a trade war resolution. First, as I've argued going back to last year, IQ stock looks like an attractive bet for China bulls in general.Even though the oft-made comparison to Netflix (NASDAQ:NFLX) is somewhat simplistic, the gap in valuation between the two stocks is immense. Investors who would prefer the long-term growth of Chinese stocks to the lower risk of U.S. issues should consider iQiyi stock regardless of near-term factors.Second, iQiyi has seen significant impact from the trade war already. Lower advertising revenue, driven by macro weakness, has hit recent quarterly results. Overall top-line growth has decelerated noticeably as a result. True, other Chinese stocks like Baidu (NASDAQ:BIDU) and Sina (NASDAQ:SINA) have seen similar pressures. But both companies have broader secular concerns in terms of user traffic that have contributed to their own selloffs. IQiyi likely would see an immediate financial benefit from a trade agreement, which in turn would help iQiyi shares.And, finally, as I wrote this week, IQ stock has been hit by sentiment changes among U.S. traders as well. Growth stocks have fallen across the board. It would seem likely that higher-risk group would get a bounce on a trade deal, which would only contribute to the upside potential for IQ in such a scenario. Tencent Music Entertainment (TME)Tencent Music Entertainment (NYSE:TME) is another high-risk, high-reward play. But the case at the moment is intriguing.Like IQ stock, TME has important differences relative to its Western counterparts, in this case Spotify Technology (NYSE:SPOT) and Sirius XM (NASDAQ:SIRI) unit Pandora. Its social entertainment business -- essentially live streaming -- still drives the majority of profit and revenue. Growth there is decelerating, a potential risk to TME stock.But Tencent Music Entertainment has another notable distinction: it's profitable. In fact, TME stock currently looks reasonably cheap. Backing out nearly $3 billion in cash on the balance sheet, shares trade for roughly 24x 2020 consensus earnings-per-share estimates. That's a reasonable multiple for a company still early in its growth, and one with obvious opportunity to expand music consumption in the country.There are risks. A Chinese antitrust investigation could upend the business model. Competition will remain intense. * 10 Small-Cap Stocks to Buy Before They Grow Up But all Chinese stocks have risks. The backing of parent Tencent (OTCMKTS:TCEHY), growth potential and valuation combine for an attractive bull case regardless. Those positive attributes don't look priced in at $14. If a trade war deal can drive increased confidence toward the Chinese consumer, they will be priced in. NetEase (NTES)Despite a $35 billion market capitalization, online gaming company NetEase (NASDAQ:NTES) seems overlooked among Chinese stocks. It shouldn't be, as there's a lot to like here.NetEase has a dominant market position in its vertical. Revenue growth has slowed, but lower spending has led to impressive profit growth. Non-GAAP net income rose 33% year-over-year in the second quarter, which followed a monster earnings beat in Q1.And yet NTES stock is cheap, at just 17x forward earnings. It looks far too cheap. Gaming growth in China will continue. The IPO of education arm Youdao (NYSE:DAO) further strengthens the balance sheet. And margins should continue to improve.NTES stock has risen 50% from December lows, but it still sits below early 2018 highs. As sentiment improves toward Chinese stocks, NetEase should benefit.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cybersecurity Stocks to Keep Your Portfolio Safe * 7 Top-Notch REITs to Buy for Income * 5 Reasons Why I Still Believe in Hexo Stock The post 3 Chinese Stocks to Buy If the Trade War Wraps Up appeared first on InvestorPlace.
- PR Newswire
iQIYI Launches "AI Seniors Mode" on QIYIGUO TV, Further Improving Care for Elderly Users
BEIJING , Oct. 25, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China , jointly with Galaxy ...
- GlobeNewswire
iQIYI to Report Third Quarter 2019 Financial Results on November 6, 2019
BEIJING, Oct. 24, 2019 -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that it will.
- PR Newswire
Blackpink Member Lisa Appointed as New Mentor for iQIYI's Original Variety Show "Qing Chun You Ni 2"
BEIJING , Oct. 24, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China , announced recently ...
- InvestorPlace
The Problem with IQ Stock Might Be the U.S., Not China
iQiyi (NASDAQ:IQ) stock keeps slipping. The stock touched an eight-month low earlier this month, and even with a recent rally sits 43% below February highs.Source: Faizal Ramli / Shutterstock.com There are some fundamental reasons for the decline. Trade war worries have pressured the Chinese economy. As a result, iQiyi's advertising sales dropped 16% year-over-year in the second quarter after a flattish performance in Q1. That weakness was just part of a Q2 report that looked concerning for IQ stock.That said, other Chinese companies are seeing similar pressures. And their shares have held up better. Alibaba (NYSE:BABA), for instance, trades just 13% below its 52-week high. JD.com (NASDAQ:JD), which like IQ is more of a growth play, is 7% off its highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Stocks to Buy and Hold Through 2020 The divergence in IQ stock suggests that at least part of the problem could lie with U.S. investors, rather than Chinese economic conditions. What that means for the stock might depend on whether those U.S. investors are right. iQiyi Stock UnderperformsAs noted, IQ stock has underperformed larger Chinese consumer plays. But the divergence holds looking elsewhere in the group. In fact, among 42 Chinese stocks with a market capitalization above $2 billion, only three are farther from their highs than IQ stock.Admittedly, two of those three are Baidu (NASDAQ:BIDU) and Sina (NASDAQ:SINA), which, like iQiyi, have seen pressure on ad sales. That said, IQ hardly has the same exposure to advertising. Roughly 30% of its second quarter revenue came from advertising. For Baidu, the figure was over 80% excluding iQiyi, which is included in its financial statements. (Baidu still owns a majority stake in iQiyi.)Meanwhile, IQ stock hasn't had a steep post-earnings fall, as both BIDU and SINA have. And yet it has performed almost as poorly. Obviously, trade war and macro worries have played a part. But essentially every other Chinese stock faces similar exposure, as even the largest companies still have minimal international exposure.The relative decline does make IQ stock intriguing for Chinese bulls -- as I've argued twice before. But the fall might not suggest the stock actually is cheap if the decline is coming, at least in part, from a rational response by U.S. investors. Is NFLX Stock Hitting IQ Stock?IQ stock seems to be underperforming Chinese peers despite decent earnings performance. (Both quarters have looked solid, though the company did miss second-quarter earnings per share estimates by a penny.) That might signal an opportunity. Bigger declines during the trade war should in turn lead to bigger gains if and when that dispute is resolved.I have made a similar case for IQ stock before, most recently in June. More so than other Chinese plays -- even leaders like BABA and JD -- IQ seemed to have the most potential for a rally when sentiment toward Chinese stocks improved. That thesis played out at the beginning of this year: iQiyi stock nearly doubled on its way to February highs.But there has been a notable change since February. U.S. investors are much, much less willing to pay up for unprofitable growth stocks. Netflix (NASDAQ:NFLX), for instance, to which iQiyi is often and not always accurately compared, has seen its shares drop over 25%. The pressure on recent IPOs like Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) has been well-documented as well.The weakness in NFLX stock, in particular, may be causing IQ stock to slide. Much of the fundamental case for IQ since its IPO has been based on the valuation gap on a price-to-revenue basis between the two streaming companies. Some investors may see a cheaper NFLX as implying a cheaper IQ.But the broader pressure on stocks similar to IQ might be more to blame. Investors even are focusing on profitability in cannabis stocks. Cash-burning, loss-making stocks are not in vogue on U.S. markets right now. iQiyi stock is one of those stocks at the moment. To Buy or to Sell?If that indeed is the case, that makes the case for IQ perhaps more complex. Many investors believe a trade war resolution will boost stocks (though I'm personally skeptical on that front), and it might seem like consumer-focused IQ stock would be an obvious beneficiary.But if the problem includes pressure on unprofitable growth names, the trade war catalyst isn't as strong. And given the obvious near-term risks to waiting for some movement on that front, it's tough to recommend IQ stock at the moment.Of course, for risk-loving investors, the decline makes the stock even more attractive. IQ stock right now is valued at a little over $100 per subscriber. Netflix subscribers, when NFLX traded near $400, were worth as much as $1,000 each on the public markets.That kind of gap suggests iQiyi stock could have enormous upside if investors return to growth stocks and sentiment toward the Chinese economy improves. For investors willing to bet on both those developments, there may be no better opportunity in this market.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 Investors Fearing Another Q4 Downturn * 5 Penny Stocks to Buy If You Can Risk It * 7 Safe Stocks to Buy and Hold Through 2020 The post The Problem with IQ Stock Might Be the U.S., Not China appeared first on InvestorPlace.
- PR Newswire
iQIYI and KFC Collaborate for "VIP Products Day" to Expand Membership Offerings
BEIJING , Oct. 23, 2019 /PRNewswire/ -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China , recently announced ...
- PR Newswire
iQIYI Strengthens Influence on Chinese Pop-culture Trends through New Reality Show "FOURTRY"
BEIJING , Oct. 23, 2019 /PRNewswire/ -- On October 15 , iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China announced ...
- PR Newswire
NINEPERCENT Holds Farewell Concert, iQIYI Upgrades in Innovative Membership Benefits for Idol-incubation IP Met with Great Acclaim
BEIJING , Oct. 22 , 2019 /PRNewswire/ -- On October 12th , over 10,000 fans from across China gathered for NINEPERCENT's farewell concert in Guangzhou . NINEPERCENT (the "Group") is a boy group ...
- Insider Monkey
Is iQIYI, Inc. (IQ) A Good Stock To Buy?
Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 12 months is one of those periods, as the Russell 2000 […]
- PR Newswire
App Annie Releases Worldwide App Index for Q3 2019: Global Consumer Spending for Apps Exceeds $23 Billion with iQIYI Ranking in 3rd
BEIJING , Oct. 18, 2019 /PRNewswire/ -- The mobile application of iQIYI -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "App"), a market-leading online entertainment service in China , ...
- PR Newswire
2019 iQIYI iJOY Conference: Promoting Brand Growth through Content and Value-Driven Marketing
SHANGHAI, Oct. 18, 2019 /PRNewswire/ -- iQIYI, Inc. (IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, held its annual iJOY Conference (the "Conference") in Shanghai on October 15th. Under the theme of "New Trends New Growth", the Conference served as a platform for iQIYI to announce its content and marketing strategy for 2020 and discuss the future prospects of China's entertainment industry with brand advertisers and iQIYI partners.
- InvestorPlace
iQiyi Stock Is Really Not the Next Netflix
Most investors would love to have the next Netflix (NASDAQ:NFLX) in their portfolio. But make no mistake, buying iQiyi (NASDAQ:IQ) stock is not the way to enjoy that kind of storied investment.Source: Faizal Ramli / Shutterstock.com Over the last decade -- and despite a more drawn out correction over the past year -- shares of NFLX stock have returned more than 5,000% to its long-term investors. At its best, a gain in excess of 10,000% was staring some shareholders squarely in the face. I wish I had that foresight while browsing the aisles of Blockbuster. But I'm here to plea investors to let bygones be bygones. Don't think buying IQ stock simply because it's hailed as China's Netflix is going to fix anything.To be certain, some investors will argue that while iQiyi has been likened to Netflix, its business model also includes platforms similar to Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube and privately held Twitch. And I get it, that pitch sounds even more compelling. But more importantly, IQ stock faces an uphill battle off and on the price chart.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Chinese Stocks and a Rough 2019The past year of course hasn't just been painful for IQ stock. More than a few Chinese stocks like Alibaba (NYSE:BABA) and Tencent (OTCMKTS:TCEHY) can blame the trade war with the United States as being in large part responsible for their underperformance since 2018. But iQiyi has much deeper issues. * 10 Super Boring Stocks to Buy With Super Safe Returns As original content costs skyrocket, the increasingly expensive streaming market will continue to become more challenging for iQiyi stock. It's a trend which shouldn't be dismissed. And with the company nowhere close to turning a profit -- and going through cash like water trying to make a name for itself -- that point is all the more important. And by the way, Alibaba and Tencent? Those two tech titans also happen to be very well-capitalized threats to IQ's success.Sure, bulls could try to look at IQ's impressive subscriber data and believe with roughly 93% of China's 1.4 billion population still untapped, that there's only upside for iQiyi stock price. But as InvestorPlace's Josh Enomoto eloquently discusses, it's simply not that easy.Then there's IQ stock's price chart. From a quick glance, it's easy enough to hope for a bullish resolution. But again, if the story looks to good to be true, watch out below. IQ Stock Weekly ChartIt's not fun being the bearer of bad news, but I take the responsibility seriously. It would be very easy to be bullishly appreciative of a potential triple bottom taking shape on the weekly price chart with iQiyi stock. With last week's hammer candlestick, a rally above $16.94 would confirm the pattern. You'll get no argument there. It is what it is.Still, a break of technical support could get even uglier for IQ stock as new lows are made. And this isn't only because iQiyi's stochastics are failing to hint at a bottom or that broken patterns can be powerful motivators -- especially large ones like IQ's.IQ stock, plain and simple, is highly speculative. And where the rubber meets the road, bottoming formations of this type should be reserved for stocks which have the backing of stronger fundamentals that support longevity or aren't already showing signs of stagnating growth. Again, thanks Josh.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. . For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post iQiyi Stock Is Really Not the Next Netflix appeared first on InvestorPlace.
- Benzinga
Option Trader Makes Big Bet On iQiyi Despite Negative Trade War Headlines
Shares of Chinese online video platform iQiyi Inc (NASDAQ: IQ) dropped another 3% on Tuesday and are now down 38.4% overall in the past year as the trade war between the U.S. and China appears to be ramping up once again. On Tuesday morning, Benzinga Pro subscribers received an option alert related to an unusually large iQiyi trade.
- Zacks
IQIYI, Inc. Sponsored ADR (IQ) Dips More Than Broader Markets: What You Should Know
IQIYI, Inc. Sponsored ADR (IQ) closed the most recent trading day at $15.92, moving -1.3% from the previous trading session.
