IQ - iQIYI: Anticipating Slower Growth And Profitability Improvement (Rating Downgrade)
2024-06-04 08:28:30 ET
Summary
- iQIYI's revenue could grow at a more moderate pace in 2024, considering its Q1 top line performance, a focus on the long term, and competition from short-form videos.
- IQ's first quarter operating margin beat expectations, and there is potential for further profitability improvement driven by marketing expense optimization and content cost reduction.
- I have chosen to downgrade my rating for iQIYI stock to a Hold, as I view the company's outlook as mixed.
Elevator Pitch
My rating for iQIYI, Inc. ( IQ ) stock is a Hold. I previously touched on iQIYI's pricing strategy and financing activities in my February 5, 2023 article ....
iQIYI: Anticipating Slower Growth And Profitability Improvement (Rating Downgrade)