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iQIYI Inc (IQ)
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Upturn Advisory Summary
01/13/2025: IQ (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -16.17% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/13/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.76B USD | Price to earnings Ratio 7.96 | 1Y Target Price 2.63 |
Price to earnings Ratio 7.96 | 1Y Target Price 2.63 | ||
Volume (30-day avg) 18121512 | Beta 0.07 | 52 Weeks Range 1.82 - 5.80 | Updated Date 01/13/2025 |
52 Weeks Range 1.82 - 5.80 | Updated Date 01/13/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.23 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5.36% | Operating Margin (TTM) 4.6% |
Management Effectiveness
Return on Assets (TTM) 4.22% | Return on Equity (TTM) 14.31% |
Valuation
Trailing PE 7.96 | Forward PE 6.05 | Enterprise Value 3046833879 | Price to Sales(TTM) 0.06 |
Enterprise Value 3046833879 | Price to Sales(TTM) 0.06 | ||
Enterprise Value to Revenue 0.72 | Enterprise Value to EBITDA 7.63 | Shares Outstanding 525220992 | Shares Floating 3256853308 |
Shares Outstanding 525220992 | Shares Floating 3256853308 | ||
Percent Insiders 0.22 | Percent Institutions 56.63 |
AI Summary
iQIYI Inc. (IQ): A Comprehensive Overview
Company Profile
History and Background
iQIYI Inc. (IQ) is a Chinese online entertainment service provider founded in 2010. It operates the largest online video platform in China with over 100 million subscribers. iQIYI offers a comprehensive range of services, including online video streaming, subscription video on demand (SVOD), movies, drama series, variety shows, anime, and e-sports content. It also produces original content, invests in film and television, and licenses content from international providers.
Key Milestones:
- 2010: Founded as QIYI.com by Baidu.
- 2011: Launched the iQIYI brand.
- 2012: Became independent from Baidu.
- 2015: Listed on NASDAQ.
- 2016: Launched the VIP subscription service.
- 2019: Acquired Mango TV.
- 2022: Launched the AI-powered smart assistant, Lumi.
Core Business Areas
iQIYI operates in three main segments:
- Membership Services: Generates revenue through SVOD subscriptions.
- Online Advertising Services: Delivers targeted advertising to users based on their viewing habits.
- Content Distribution: Sells content to other media platforms and partners.
Leadership Team and Corporate Structure
Management Team:
- Gong Yu - Founder, Chairman and CEO
- Xiaodong Wang - COO
- Yujian Tang - CFO
- Yang Xian - President of Membership and Marketing Group
- Lei Zhang - President of Film and Television Business Group
Board of Directors:
- Gong Yu - Chairman
- Xiaodong Wang - Vice Chairman
- Jixing Wang - Independent Director
- Yan Chen - Independent Director
- Yan Li - Independent Director
- Xiaopeng Li - Independent Director
- Lei Zhang - Independent Director
Top Products and Market Share
Top Products:
- iQIYI App: Video streaming platform available on various devices.
- VIP Subscription: Access to exclusive content, ad-free streaming, and offline viewing.
- Original Content: Popular shows like The Lost Tomb, Story of Yanxi Palace, and Youth With You.
- E-sports: Exclusive streaming rights to major tournaments and leagues.
Market Share:
- China's largest online video platform with 106 million subscribers (as of Q2 2023).
- Global reach with over 172 million monthly active users.
- Accounts for around 20% of the Chinese online video market, behind Tencent Video (24%) and Youku (16%).
Product Performance and Reception:
- iQIYI app enjoys high user engagement and positive reviews.
- Original content has received critical acclaim and commercial success.
- E-sports initiatives have attracted a large and dedicated audience.
Total Addressable Market
The global online video streaming market is expected to reach $1.27 trillion by 2027, growing at a CAGR of 10.9%. The Chinese online video market alone is estimated to be worth $54.5 billion by 2025, making it the largest market globally.
Financial Performance
Recent Financial Statements (Q2 2023):
- Revenue: $1.4 billion (YoY: -9%)
- Net Income: -$347 million (YoY: -160%)
- Profit Margin: -24.8%
- EPS: -$2.06
- Cash Flow: -$446 million
- Total Assets: $6.9 billion
- Total Liabilities: $4.6 billion
Year-over-Year Comparison:
iQIYI has experienced a decline in revenue and net income in Q2 2023 compared to the same period in 2022. This is primarily due to the economic slowdown in China and increased competition in the online video streaming market. However, the company's cash flow and balance sheet remain healthy.
Dividends and Shareholder Returns
iQIYI does not currently pay dividends.
Total Shareholder Returns:
- 1 year: -65%
- 5 years: -90%
- 10 years: -95%
Growth Trajectory
Historical Growth: iQIYI experienced rapid growth in its early years, driven by the expansion of the online video market in China. However, growth has slowed down in recent years due to saturation in the market and increased competition.
Future Growth Projections:
iQIYI's future growth is expected to be driven by:
- Expansion of its membership base.
- Growth in e-sports viewership.
- Content licensing and partnerships.
- International expansion.
Market Dynamics
Industry Trends:
- Increasing demand for high-quality streaming content.
- Growing popularity of e-sports.
- Technological advancements in artificial intelligence and virtual reality.
Company Positioning:
iQIYI is well-positioned to capitalize on market trends with its large subscriber base, popular content library, and commitment to innovation. The company's e-sports focus and AI-powered initiatives place it at the forefront of the industry.
Competitors
- Tencent Video (TCEHY) - Market share: 24%
- Youku (BABA) - Market share: 16%
- Bilibili (BILI) - Market share: 14%
Competitive Advantages and Disadvantages:
Advantages:
- Largest online video platform in China.
- Strong content library.
- Focus on e-sports.
- AI-powered technology.
Disadvantages:
- High debt levels.
- Intense competition.
- Slowdown in Chinese economy.
Opportunities and Challenges
Key Challenges
About NVIDIA Corporation
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2018-03-29 | Founder, CEO & Director Dr. Yu Gong | ||
Sector Communication Services | Industry Entertainment | Full time employees 4788 | Website https://www.iqiyi.com |
Full time employees 4788 | Website https://www.iqiyi.com |
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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