Iqiyi (IQ) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: N/A
• Average Volume (3M): 24.45M
• Price to Earnings (P/E): 203.1
• Beta (1Y): 1.00
• Revenue Growth: -10.86%
• EPS Growth: -94.68%
• Country: US
• Employees: 4,673
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): <0.01
• Shares Outstanding: 528,516,360
• 10 Day Avg. Volume: 15,813,547
• 30 Day Avg. Volume: 24,448,059
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $2.51
• Price Target Upside: -3.46% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: $2.50 ▼(-3.85% Downside)

Iqiyi's overall stock score is driven by its strong technical indicators and positive earnings call highlights, which are offset by valuation concerns and mixed financial performance. The company's ability to innovate and grow in overseas markets is a positive sign, but high P/E ratio and revenue declines in key areas pose risks.

Positive Factors

Overseas Business Growth

Iqiyi's strong growth in overseas markets, particularly in membership revenue, indicates successful international expansion and diversification, reducing reliance on domestic markets and enhancing long-term revenue potential.

Innovative Business Models

The adoption of innovative business models, such as revenue-sharing for theatrical releases, showcases Iqiyi's ability to adapt and monetize content effectively, potentially increasing revenue streams and competitive advantage.

AI-Driven Enhancements

Iqiyi's use of AI to enhance viewer engagement and reduce production costs demonstrates a commitment to technological innovation, potentially improving operational efficiency and user experience over the long term.

Negative Factors

Decline in Membership Services Revenue

A decline in membership services revenue due to a lighter content slate suggests challenges in content strategy and subscriber retention, which could impact long-term revenue stability and growth.

Decrease in Advertising Revenue

The decline in advertising revenue reflects macroeconomic pressures and changing advertiser strategies, potentially affecting Iqiyi's ability to generate revenue from its large user base in the long term.

Revenue Growth Challenges

Negative revenue and EPS growth highlight ongoing challenges in sustaining financial performance, which could hinder Iqiyi's ability to invest in content and technology, impacting future competitiveness.

Iqiyi Business Overview & Revenue Model

Company Description

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People's Republic of China. The company offers various products and services comprising internet video, online games, live broadcasting, online literature, animations, e-commerce, and social media platform. It operates a platform that provides a collection of internet video content, including professionally-produced content licensed from professional content providers and self-produced content. The company also provides membership, content distribution, and online advertising services. In addition, it operates iQIYI Show, a live broadcasting service that enables users to follow their favorite hosts, celebrities, and shows in real time through live broadcasting; and iQIYI Lite, 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 Holdings Limited.

How the Company Makes Money

Iqiyi generates revenue through multiple streams, with the primary sources being subscription fees from its premium membership service and advertising revenues. The subscription model allows users to pay for access to exclusive content and an ad-free viewing experience. In addition to subscriptions, Iqiyi earns income from advertisers who pay to place ads on its platform, leveraging its large user base for targeted marketing. The company also engages in partnerships with content creators and production studios, which can lead to co-productions and licensing deals, further boosting its revenue. Moreover, Iqiyi invests in original content creation, which not only attracts subscribers but also enhances its brand value and competitive edge in the crowded streaming market.

Iqiyi Financial Statement Overview

Summary

Iqiyi exhibits a mixed financial performance. The income statement reflects efforts to stabilize profits amidst revenue volatility, while the balance sheet indicates a relatively balanced capital structure but with notable liabilities. Strong cash flow management provides a buffer against financial uncertainties, but sustained growth remains a challenge.

Income Statement

Iqiyi's income statement shows fluctuating revenue with a slight decline in the TTM, indicating challenges in sustaining growth. Profit margins are low, with a gross profit margin of 23.7% and net profit margin of 1.0% for TTM, reflecting pressure on profitability. However, the company has managed to recover from previous losses, showcasing resilience.

Balance Sheet

The balance sheet reveals moderate leverage with a debt-to-equity ratio of 1.10, indicating manageable but significant debt levels. The equity ratio stands at 28.9%, suggesting a stable capital structure. The company has improved its equity position over time, yet high liabilities remain a concern.

Cash Flow

Iqiyi demonstrates strong cash flow management with a positive free cash flow of 1.4 billion in TTM and a free cash flow to net income ratio of 4.86. However, the decline in free cash flow growth rate indicates potential future challenges in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.48B	29.23B	31.87B	29.00B	30.55B	29.71B
Gross Profit	6.76B	7.27B	8.77B	6.68B	3.04B	1.82B
EBITDA	1.64B	1.82B	17.25B	14.34B	12.10B	11.28B
Net Income	290.89M	764.06M	1.93B	-117.78M	-6.11B	-7.01B
Balance Sheet
Total Assets	47.12B	45.76B	44.59B	46.05B	42.47B	48.19B
Cash, Cash Equivalents and Short-Term Investments	5.27B	4.47B	5.38B	7.92B	4.35B	14.27B
Total Debt	15.03B	14.19B	15.29B	21.83B	17.57B	21.52B
Total Liabilities	33.48B	32.39B	32.41B	39.70B	36.80B	38.85B
Stockholders Equity	13.64B	13.37B	12.09B	6.25B	5.19B	9.26B
Cash Flow
Free Cash Flow	1.41B	1.94B	3.25B	-6.22B	-6.35B	-5.80B
Operating Cash Flow	1.51B	2.11B	3.35B	-5.95B	-5.95B	-5.41B
Investing Cash Flow	-2.25B	-2.44B	-1.74B	1.26B	1.26B	159.30M
Financing Cash Flow	-770.78M	-1.37B	-4.29B	-2.96B	-2.96B	9.37B

Iqiyi Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Neutral. The current price of 2.6 is below the 20-day moving average (MA) of 2.60, above the 50-day MA of 2.21, and above the 200-day MA of 2.06, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IQ.

Iqiyi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFLX	78 Outperform	521.37B	52.29	41.07%	―	14.28%	46.86%
ROKU	77 Outperform	15.00B	-240.05	-2.37%	―	17.32%	87.79%
DIS	76 Outperform	204.53B	17.84	10.58%	0.88%	5.00%	144.65%
WMG	71 Outperform	17.48B	59.34	50.42%	2.18%	1.36%	-45.79%
WBD	68 Neutral	47.86B	64.01	2.13%	―	-3.79%	0.00%
IQ	68 Neutral	$2.50B	203.13	0.67%	―	-10.86%	-94.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Iqiyi Corporate Events

iQIYI Reports Q2 2025 Financial Results with Revenue Decline

On August 20, 2025, iQIYI announced its financial results for the second quarter ending June 30, 2025. The company reported a total revenue of RMB6.63 billion, marking an 11% decrease year over year. The quarter saw a net loss of RMB133.7 million, a significant drop from the net income of RMB68.7 million in the same period in 2024. Despite a lighter content slate affecting membership services revenue, iQIYI maintained top market share in drama viewership. The company is focusing on innovation and optimizing its capital structure to drive long-term success.

iQIYI Announces Board Reshuffle with New Leadership

On August 1, 2025, iQIYI, Inc. announced significant changes to its board composition. Mr. Junjie He and Ms. Shanshan Cui resigned as directors and members of the compensation committee, while Mr. Haijian He and Mr. Zhanbing Xu were elected as new directors. Mr. Haijian He, who is also the CFO of Baidu, was appointed as the chairman of the board and the compensation committee. These changes are expected to bring new strategic insights and strengthen iQIYI’s leadership, potentially impacting its market positioning and stakeholder relations.