25.30 0.00 (0.00%)
After hours: 6:06PM EST
|Bid||25.25 x 1300|
|Ask||25.30 x 4000|
|Day's Range||24.83 - 26.50|
|52 Week Range||15.12 - 29.18|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||23.87|
|Earnings Date||Feb 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||22.85|
The Great Ruler, an original fantasy drama (the "Drama") currently being released by iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, has achieved domestic and international acclaim following its premiere on January 30, adding to the string of success achieved by its comic and animation counterparts.
IQIYI, Inc. Sponsored ADR (IQ) closed the most recent trading day at $27.18, moving +0.41% from the previous trading session.
With the worsening coronavirus outbreak and concerns about a bull market growing long in the tooth, I recognize the temptation to be skeptical about stocks. As I've explained before, equities have a tendency of quickly overcoming contagious disease-related headwinds. That's especially the case with strong bullish cycles, like we're on right now. But if you're still unconvinced, I recommend taking a look at iQiyi (NASDAQ:IQ) and IQ stock.Source: NYC Russ / Shutterstock.com The streaming giant, which investors often refer to as the "Netflix (NASDAQ:NFLX) of China," has a profound tailwind: the world's second-largest economy is essentially on lockdown.Because the coronavirus has spread rapidly - at time of writing, the Chinese government disclosed 31,161 cases and 636 deaths - the incentive to go out in public is gone. As things stand, there's not much people can do but wait out the epidemic.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLogically, this translates to many boring hours sitting at home. This environment practically begs for IQ stock to move higher, which it has in recent sessions.Better yet, even before this health crisis shuttered China, IQ stock was an easy buy. As you know, I base my investment decisions on megatrends and there are few bigger than video streaming. * 7 Utility Stocks to Buy That Offer Juicy Dividends In September of last year, iQiyi and competitors Youku and Tencent (OTCMKTS:TCEHY) reported monthly active user counts of 244 million, 206 million and 131 million, respectively. Though competition is fierce, iQiyi has distinguished itself by expanding overseas. Thanks to its strategic partnership with Malaysian satellite television operator Astro, iQiyi is the first true Chinese video streaming provider to offer substantive international services.Also, keep in mind that while Netflix took 20 years to get 100 million paying subscribers, iQiyi did it in nine! China Shutdown a Unique Catalyst for IQ StockOne of the criticisms against iQiyi, though, is that management has prioritized robust growth over profitability. As many analysts have pointed out, net income losses continue to widen while long-term debt continues to rise. Contrast this dynamic to Netflix, which has long focused on sustainable growth.However, one of the key differences between NFLX and IQ stock is their respective underlying markets. At a population size about four-times bigger than the U.S., iQiyi simply has a much more sizable addressable market.But with fears over the coronavirus, the Chinese market has become even more addressable. In many ways, it's a hostage market.Prior to the outbreak, the international community welcomed Chinese tourists. Why? It's all about the Benjamins. In 2013, international tourism expenditure of Chinese visitors was already high at nearly $129 billion. But in 2014, it skyrocketed to $234.7 billion. And by the end of 2018, this figure reached $277 billion. For perspective, that's the GDP of Chile being spent on various countries throughout the world. Click to EnlargeNow, those funds have basically evaporated for the receiving countries. Due to the need for precautionary measures, the international community has placed restrictions on travel to and from China. Some have even gone so far as to bar all visitors from Asian ports.Of course, the money hasn't literally evaporated. Instead, whatever funds that would have been spent on foreign travel is now sitting at home. Like I said earlier, streaming represents an easy, accessible entertainment option during the forced downtime. Hence, we have a minitrend developing within the context of a broader one.Further, the coronavirus response enables iQiyi to balance its viewership allocation. Currently, most of its users come from first-tier cities. But lower-tier cities surprisingly offer viable conversion opportunities. Chinese Streaming Market Not Unlike Our OwnOne of the most powerful megatrends that I discuss is demographics. Combined with the technological revolution that is flourishing through innovations like 5G, demographics will play a huge role in what I term the Roaring 2020s.It's a similar situation in China. As with the U.S., streaming in China skews young. Most streaming users, or 38.4%, are between the ages of 25 to 34 years. Those include prime earning years, which implies further conversion opportunities for iQiyi as the populace ages.But an interesting trend is that a sizable number of older people (ages 45 to 54 years) have also cut the cord. Therefore, the addressable market - coronavirus or not - is far more expansive and diverse in China than other regions.Ultimately, the numbers overwhelmingly work in iQiyi's favor. If you're worried about the coronavirus, but still want to buy stocks, IQ is a compelling option.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 U.S. Stocks to Buy on Coronavirus Weakness * 7 Smart Blue-Chip Stocks to Buy Now * 7 Low-Volatility Stocks to Buy In Jittery Times The post Why the Coronavirus Might Inadvertently Launch IQ Stock appeared first on InvestorPlace.
Against the backdrop of the novel coronavirus outbreak in China, iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, has been leveraging its strengths in premium content, partnerships and its massive membership base to take a wide array of online and offline actions to support the nation's fight against the virus.
U.S.-listed Chinese internet stocks rallied in Monday trading after the People's Bank of China said it would intervene to help stimulate the Chinese economy as the coronavirus continues to spread, stalling business operations in the company. The rally for U.S.-listed internet stocks comes as the Shanghai Composite index dropped about 8% after it reopened Monday at the culmination of the Lunar New Year holiday, though the decline was not as steep as some had feared. Among the U.S.-listed shares trading higher in Monday's session are Alibaba Group Holding Ltd. , JD.com Inc. , and Qutoutiao Inc. Shares of Baidu Inc. and iQiyi Inc. are also up sharply after Baidu raised its outlook late Friday but said it would be delaying its earnings report due to the outbreak. The KraneShares CSI China Internet ETF is up 2.9% in Monday trading, though it has fallen 3.3% over the past month.
iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, jointly announced with the production and distribution teams of Enter The Fat Dragon (the "Film") that the action comedy film has been made available to viewers on iQIYI's online streaming platform on February 1 through its early-access transactional on-demand mode (the "Mode"). The Film was originally scheduled for theatrical release across China on February 14.
BEIJING, Jan. 31, 2020 -- iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that it has.
It's been close to two years since IQIYI (NASDAQ:IQ) came public. But the company, which is often compared to the Netflix (NASDAQ:NFLX) of China and is a spin-off of Baidu (NASDAQ:BIDU), has had a choppy performance since its offering. The Initial Public Offering for IQ stock was at $18 a share. As of now, the shares are fetching $22.60 -- a gain of 26%. But hey, during this period, NFLX has also had a choppy track record.Source: NYC Russ / Shutterstock.com So what now for IQ stock? Is it time to consider a purchase?Well first of all, IQ stock certainly has some notable positives. After all, the company has nearly 106 million subscribers to its streaming service, making it one of the world's largest video platforms. And of course, there is much more room to grow, as China has more than 480 million households.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLike NFLX, IQIYI has been investing heavily in its premium content. Some of programs launched in the quarter include dramas like Arsenal Military Academy, Love and Destiny as well animation serials and reality shows. * 7 Under-the-Radar European Stocks to Buy for 2020 But despite all this, there is a nagging issue: revenues have stagnated. During the latest quarter, growth was a mere 7%.So what's going on? There are myriad reasons. For one, the market for higher income subscribers appears to be at saturation levels. While IQ is attempting to penetrate lower-tier markets, this is likely to be challenging. That helps explain why the company has been looking outside of China for growth.A recent example of this is the company's deal with Astro, a top Malaysian satellite TV operator. China's EconomyPerhaps the biggest problem for IQ stock is China's languishing economy. It really does look like the trade war had a major impact, as growth in 2019 hit the lowest point in three decades.Granted, the Phase One agreement with the US will help -- but that will likely still be a modest improvement. The fact is there is a long way to go to relive some of the US pressure on China.To get a sense of the impact of all this on IQ stock, just look at the advertising business. The company reported a grueling 14% drop in the latest quarter, on a year-over-year basis. Consider that ad spending is highly sensitive to changes in the economy. Simply put, it's the kind of item that is fairly easy to cut.In the meantime, the outbreak of the coronavirus will only exacerbate the situation. The city of Wuhan has been put under lockdown (the population is 11 million) and there are transportation controls on at least eight other cities. This comes at the time of the Lunar New Year, which involves heavy consumer spending.It's extremely difficult to gauge the impact of this. But when the SARS virus hit China in 2002, the GDP growth dropped from 11.1% to 9.1% when it was at the peak. It's also important to keep in mind that consumer spending represents a much larger portion of the economy. Bottom Line On IQ StockWith the tough economic headwinds, IQ will likely struggle to get growth back on track. Let's face, the subscription to a steaming service is a highly discretionary item. It also does not help that content costs continue to escalate, which will continue to adversely impact the bottom line.So given all the uncertainty, it's probably best to hold off for now on IQ stock.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Under-the-Radar European Stocks to Buy for 2020 * 7 Industries Using AI to Benefit Shareholders Around the World * 5 Chinese Stocks to Buy When Coronavirus Fears Fade The post When It Comes To IQIYI Stock, Investors Should Tune Out appeared first on InvestorPlace.
Wedbush Chief Technology Strategist Brad Gastwirth said in a note to clients Tuesday that Chinese content plays iQiyi Inc. and Joyy Inc. could see positive benefits from the coronavirus spread as people stay home due to concerns about the outbreak. "Given the lack of travel we see iQiyi (online video/entertainment) along with the popularity of yy.com benefiting from this outbreak," he wrote, though Wedbush doesn't formally cover the two stocks. Chinese internet stocks are generally rallying in premarket trading Tuesday after suffering Monday declines. The KraneShares CSI China Internet ETF has dropped in each of the past five trading sessions. Shares of iQiyi are up 2.1% in premarket trading while shares of Joyy are up 2.9%.
Commonly referred to as the Netflix (NASDAQ:NFLX) of China, video streaming platform iQiyi (NASDAQ:IQ) enjoyed a profitable but turbulent 2019. Getting off to a meteoric start within the first two months of last year, IQ stock plummeted into early October. But as the U.S.-China trade war pressure eased, sentiment for shares resumed. Now, prospective buyers all have the same question: can this momentum carry throughout 2020?Source: NYC Russ / Shutterstock.com I don't think it's a stretch to assume that most folks view IQ stock in a positive light. As a Chinese company, iQiyi suffered significant pressure from the trade war. While the specifics of the trade dispute didn't directly impact the streaming company, it conspicuously hurt China's consumer sentiment.From early 2016 through late 2017, the Asian juggernaut's consumer confidence index skyrocketed. However, the index's progress came to a grinding halt in 2018 as the U.S. and China ramped up their sharp rhetoric. As words transitioned to tariffs, consumer confidence largely flatlined.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd because iQiyi depends on people's discretionary spending - streaming is entertaining but it's not a necessity - the prospects for IQ stock turned rather cloudy. * The 10 Best Value Stocks to Own in 2020 Fortunately, then, shares now have a geopolitical tailwind. With the world's two biggest economies signing a "phase one" trade deal, China's consumer confidence index will likely move higher. Although the deal doesn't resolve every issue, it at least mitigates the net impact of the issued tariffs.In turn, this should translate to a recovery in China's labor market, which suffered during the trade war. Simply, more people having jobs equates to a larger discretionary income pool. Based on iQiyi's popularity, investors may see greater demand for IQ stock.Still, caution is warranted and here's why. Fiscal Concerns Remain for IQ StockOne of the oft-cited bullish arguments for iQiyi is that the company resonates with its core audience. You're not going to get a dissenting comment from me. The streaming firm consistently grows its active user base across multiple mediums. Furthermore, nearly all its total subscribing members are paying members.However, where the counterargument lies is in the financials. Given iQiyi's immense popularity and influence, this dynamic should convert to meaningful fiscal momentum. Certainly, revenue growth in past years have excited buyers of IQ stock. But now, this narrative just doesn't exist anymore.In the first quarter of 2018, iQiyi reported $772 million in top-line sales. One year later, management reported slightly over $1 billion in revenue, up nearly 35% year-over-year. Over the five quarters in that time frame, the average sales growth rate equaled over 44%.That's the good news. But in the last two quarters (Q2 and Q3 2019), that growth rate has dipped to an average of 5.6%. Click to Enlarge Source: Chart by Josh Enomoto Granted, that by itself is not a reason to hit the panic button. However, net income losses continue to widen. As the company grew, so too did its costs and expenses. And because the losses are relatively steep, it's hard to imagine a road map to profitability without a paradigm-shifting event.Interestingly, in iQiyi's Q3 2019 disclosure, management noted that its advertising revenue dropped a sizable 14% YOY. Citing a "challenging macroeconomic environment in China" as one of the contributing factors, management let slip a key vulnerability for IQ stock: shares need a strong Chinese economy to justify their elevated market value.I wouldn't be concerned if the phase one trade deal was a comprehensive one. But with several geopolitical experts blasting the deal, iQiyi isn't out of the woods yet. Ambiguous Environment Makes iQiyi RiskyAccording to The Wall Street Journal, "…most Chinese imports are still subject to U.S. tariffs, and many trade issues remain the subject of sharp disagreement." Let's be honest: the present U.S. administration isn't what you would call diplomatic. And Chinese leaders hate losing face.In other words, the signed trade deal is more gesture than substance. Unfortunately, that leaves IQ stock hanging in a very ambiguous environment.Sure, prospective buyers can take heart in its recent rally. At the same time, though, IQ has been incredibly choppy following its initial public offering. Realistically, speculators should expect more of the same until we get a true trade deal on the table.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monthly Dividend Stocks to Buy to Pay the Bills * 7 Earnings Reports to Watch Next Week * 7 5G Stocks to Connect Your Portfolio To The post Why IQ Stock Is Risky Despite aPhase Onea Trade Deal appeared first on InvestorPlace.
The exclusive release of the fifth season of iPARTMENT (the "Show") on the streaming platform of iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, was met with great success as official data by the Company indicates that the fifth season of the Show was watched by more than 38 million iQIYI subscribing members within one week of its exclusive release. Before the fifth season of the Show was aired, it broke another record by having been added by more than 5.35 million users to their "to-watch" lists. In addition, the fifth season of the Show achieved an iQIYI Content Popularity Index of 9,000 sixteen hours after its release, making it the fourth show on iQIYI to achieve an index rating that high and the first show to do so within that timeframe. The fifth season of the Show is now available to global users through the iQIYI App.
iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, announced that its innovative high-speed streaming service "Qisubo" is now available in Myanmar as a result of a new partnership with Myanmar's leading telecommunication operator Myanmar Broadband Telecom Co., Ltd. ("MBT") and optimization solution provider Panabit. Through "Qisubo", Myanmar MBT customers can view content in 1080P and 4K quality when using the iQIYI App. This development demonstrates iQIYI's growing presence and service capabilities in the Southeast Asian market.
Shares of Chinese tech companies are off in Tuesday's session amid anxiety about a new coronoavirus that has claimed at least six lives in China so far. Ahead of what's expected to be a busy travel season around Lunar New Year, there's concern that the virus could spread even farther globally, especially after a medical expert said it could be transmitted between humans. Asia markets fell Tuesday, and U.S.-listed tech companies are also under pressure. Shares of iQiyi Inc. , Baidu Inc. , Alibaba Group Holding Ltd. , and JD.com Inc. are all off in morning trading. The KraneShares CSI China Internet ETF is down nearly 4% in the session, while the S&P 500 is down 0.2%.
BEIJING, Jan. 21, 2020 -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, today announced that it will.
On Jan. 7, Chinese video streaming service iQiyi (NASDAQ:IQ) announced a strategic partnership with Astro, a leading Malaysian satellite television operator. Under the deal, IQ will market its platform to Astro's customer base. Source: NYC Russ / Shutterstock.com InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs IQ's growth slows, its expansion outside China was inevitable. However, at this point, it's hard to know if the move indicates that IQ stock is worth $30 per share or $15 per share.Here's a look at both sides of the argument. IQ Stock Is Worth $30 Per ShareThe lack of movement by the company's stock since the partnership was announced suggests that investors aren't reading too much into the situation. Instead, they're opting to patiently wait for IQ to build a business in Malaysia. Since it's taken iQiyi more than ten years to convert its nonpaying Chinese users to paid memberships, it's unlikely that it will generate meaningful revenues from Malaysia for at least the next 12-24 months.Is IQ just trying to divert attention away from its domestic business, which is slowing significantly? I don't know the answer to that. * The Top 5 Dow Jones Stocks to Buy for 2020 What I do know is that IQ will have to spend a great deal of money to boost IQ stock by capturing market share in China's smaller cities. iQiyi doesn't necessarily have that kind of money. For IQ, grabbing some of the low-hanging fruit in Malaysia seems like a better proposition than banging its head against the proverbial Chinese Wall.InvestorPlace columnist Jonathan Berr made an excellent point about iQiyi in December, stating that the video streamer's ad-supported service is a great way to keep users viewing its content, instead of moving to a competing service. He added that Netflix (NASDAQ:NFLX), which is scrambling to hang on to its U.S. fan base, should offer an ad-supported service. Although the cost of expanding outside of China could be burdensome for IQ at this point of its development, I don't think it had any choice. After it reported single-digit-percentage revenue growth for the third quarter, it had to do something. By being bold and proactive, iQiyi CEO Tim Gong Yu is sending a message to shareholders that he's got a plan for global domination. In the meantime, IQ stock has traded above $20 for more than a month, which suggests that investors expect the company to report decent fourth-quarter results when they are slated to be unveiled in late February. IQ Stock Is Headed Back to $15In late September, I advised investors to wait for IQ stock to fall to $15 before buying the shares. I thought IQ would drop to $15 after it announced its Q3 results on Nov. 6. IQ stock fell as low as $15.12 on Oct. 2. Since then, it's gained 60%.To fall back to $15 before the end of 2020, it would have to lose nearly 40% of its value. In 2018, it fell from $40 in June to below $15 in December. That was a 63% decline in just six months. So IQ stock could potentially fall to $15 this year.In September, I wrote that IQ's Q3 guidance, which called for revenue growth of between 4% and 10%, was conservative. To my dismay, its Q3 sales grew 7%, precisely the midpoint of its guidance. That's not horrible, by any means, but it certainly does not justify the valuation of IQ stock, which is trading at 4.2 times its sales. By comparison, Netflix trades at 8.1 times its sales. NFLX, however, generated operating profit of $2.4 billion over the 12 months that ended in September, while iQiyi lost a boatload of money. With IQ stock at $24, I think its downside risk over the next six months is greater than its potential gains. If iQiyi delivers another stinker of a quarter in February, you can be sure IQ stock will fall below $20.At this point, I would wait until after IQ's earnings to buy IQ stock because right now IQ is looking more like a $15 stock than a $30 stock.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 Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Is iQiyi Stock Worth $15 or $30? appeared first on InvestorPlace.
iQIYI, Inc. (IQ) is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front.
iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, announced that the Company has become an official partner of the 77th Annual Golden Globe Awards in China. The ceremony was held on January 6, 2020 Beijing time. iQIYI participated in the annual global entertainment event along with other top entertainment companies including Netflix, HBO, BBC, USA Network, as well as top award nominees such as Scarlett Johansson and Chris Evans. iQIYI was one of the few platforms permitted to conduct official interviews and in-depth reporting on the Golden Globes Awards. Others included NBC, E-entertainment and TNT.
iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, announced that Spycies (the "Film"), a family-friendly animated film produced by iQIYI Pictures, will hit theaters across China on January 11. Following its China premiere, the film will be subsequently released in overseas markets including Europe, North America, and Southeast Asia.
iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), an innovative market-leading online entertainment service in China, announced the appointment of Kelvin Yau as Vice President of International Business Department and General Manager of iQIYI Thailand. The appointment will take effect early 2020, and Kelvin will be responsible for iQIYI's strategic growth, operation and overall development in the Thai market.
Chinese equities have been back in favor as the trade-war rhetoric between the U.S. and China continues to improve. While Huya (NYSE:HUYA) has been enjoying a rebound, it's not climbing as much as its peers. As Huya stock rallies into the end of the year, should investors buy the shares before it's too late?Source: Shutterstock Look at the one- and three-month returns for a handful of Chinese equities in the table below. It's pretty clear that Huya stock is continuing to struggle, even after its latest rebound. Worse, the stock's technicals do not favor the bulls at the moment, unless it suddenly gets a large burst of momentum that will send it over its resistance.Stock 1M Return 3M Return (NYSE:BABA) 14.6% 20.8% IQ 15.7% 17.6% (NASDAQ:JD) 13.3% 19.5% BILI 11.2% 22.3% (NASDAQ:BIDU) 9% 25.3% (NASDAQ:YY) (8.7%) (10.6%) HUYA (18%) (34.2%) As you can see, this stock has been displaying relative weakness at a time when its peers, Chinese stocks, and the overall markets are rallying. That's worrisome for the owners of Huya stock. Given the price action, it's hard to get overly bullish on the name. Let's look at the charts, which also aren't too encouraging.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Trading Huya Stock Click to Enlarge Source: Chart courtesy of StockCharts.comFor much of 2019, Huya stock was trapped between range support near $19 to $19.50 and range resistance around $26. When the stock failed to overcome its resistance in November, Huya sank below all of its major moving averages. Instead of Huya Inc finding buyers at range support, though, the sellers of the shares stepped on the gas.Huya stock cascaded through the $19 to $19.50 support area and bottomed at $16.40. The stock has since found its footing around $17 and has broken through its steep downtrend resistance (depicted by the blue line). * 7 Stocks to Buy to Get 2020 Started the Right Way So now what?The charts look ever-so-slightly more constructive at the moment. A short-term bottom has been reached, while a short-term uptrend (depicted by the purple line) is in place. Further, the MACD (depicted by the blue circle) is rotating into bulls' favor as the momentum of Huya stock begins to turn more positive. That said, the sellers remain in control.Bulls' first hurdle is the 20-day moving average. If they can push HUYA through this mark, there's a much larger hurdle overhead. Prior support at $19 to $19.50 is likely to act as resistance. If that's the case, the tone will shift to a much more bearish note for Huya stock.If the bulls can reclaim the former range support, higher targets would become realistic. But before we can even begin discussing those, the following test will prove most notable. Long story short, the bears need to defend $19, turning former range support into resistance, while the bulls need to defend the $17 level and avoid making new lows. The FundamentalsHuya stock has been lagging its peers, and its technicals do not favor the bulls. Because of that, the stock should not be bought until it clears some vital levels. That said, Huya Inc is still a quality company.Analysts, on average, predict that its revenue will surge 71% this year and another 36% in 2020. Unlike some of its peers, including iQiyi (NASDAQ:IQ) and BiliBili (NASDAQ:BILI), HUYA is actually profitable.Average forecasts call for earnings of 45 cents per share this year, up 50% from last year. For 2020, the mean estimate calls for an acceleration up to 75% earnings growth, good for earnings of 79 cents per share. That's lofty, but if the company can achieve it, Huya stock would currently be trading at just 22 times its forward earnings.That valuation would look cheap to many investors, given the company's strong growth and profitability, even if Huya stock is far from being a blue-chip name.Finally, its balance sheet is solid. The company's cash and short-term investments of 9.53 billion CNY easily outweigh all of its current liabilities, which stand at just 2.17 billion CNY. Further, Huya Inc does not carry any long-term debt. The Bottom Line on HuyaWhen the fundamentals and technicals do not align, some investors (like me) are in a tough spot. There is a solution, though.Technical investors can wait for the charts to confirm that bulls are back in control with a move over $19. Fundamental investors can take a long position near current levels, but use a stop-loss below the recent low of $16.40. If Huya Inc falls below that mark, it could reach the all-time low of $14.44.Investors should not get caught in a plunge. even if the company's fundamentals are good. Remember, risk can be defined and if investors sell due to a stop-loss being triggered, they can always get back in. Finally, some investors may find it best to take a partial position, while using proper risk controls on a decline and adding to the position if the technicals begin to look more favorable.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post Avoid Huya Stock as It Approaches Resistance appeared first on InvestorPlace.