iQIYI: Anticipating Slower Growth And Profitability Improvement (Rating Downgrade)


  • 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.

Canal+, iQIYI , Amazon Prime Video, Paramount+ streaming service app icon on screen

Robert Way/iStock Editorial via Getty Images

Elevator Pitch

My rating for iQIYI, Inc. (NASDAQ:IQ) stock is a Hold. I previously touched on iQIYI’s pricing strategy and financing activities in my February 5, 2023 article.

This latest write-up is focused

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