iQIYI Reports Wider Net Loss and Misses Earnings Estimate, Shares Drop
Chinese streaming company iQIYI (NASDAQ:IQ) reported second-quarter results that missed Wall Street expectations. The firm recorded an adjusted loss per ADS of RMB0.30—well below the consensus estimate—and a net loss of RMB287.5 million, more than double the previous year's figure due in part to higher tax expenses. Revenue also fell short at RMB6.29 billion and declined 5% compared with the same quarter last year. The disappointing results led iQIYI shares to drop by 3.0% in pre-market trading, amid a broader weak performance from tech stocks like the NASDAQ (-1.2%) and S&P 500 (-0.5%). Analysts had already been cautious ahead of the report with no upward revisions made over the prior three months. Investors are now reevaluating iQIYI's path to profitability, balancing its long-term position in China’s streaming market against near-term financial underperformance and ongoing concerns about revenue growth.
Tickers: $IQ