Should You Buy the Dip in iQIYI?

8 Apr 2021

Should You Buy the Dip in iQIYI?

. Should You Buy the Dip in iQIYI?China-based iQIYI’s (IQ) numerous strategic partnerships and consistent innovative content offerings have helped it make a name for itself amid intense competition in the online entertainment space. However, the stock fell sharply after hitting its all-time high last month. Is the downtrend expected to continue in the near-term or is the stock set for a rebound? Let’s find out.Online entertainment service provider iQIYI, Inc.’s (IQ) revenue has increased at a CAGR of 19.6% over the past three years due to its several unique content offerings and its strength across several platforms including iQIYI Mall, iQIYI Show and iQIYI Paopao.However, the stock has declined sharply since hitting its all-time high of $28.97 on March 23, due primarily to a rumored ‘large block’ sell-off reported by It is currently trading 39.2% below its 52-week high.The company was also adversely affected by a ban in Taiwan beginning last year when the Taiwan Ministry of Economic Affairs prohibited local entities from working with mainland Chinese video streaming platforms. Furthermore, as the world’s second largest economy rapidly recovered from the COVID-19 pandemic, people began spending less time at home and on entertainment platforms in general.Continue reading on StockNews

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