Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Investing.com - Benchmark has reiterated its Hold rating on iQIYI (NASDAQ:IQ), currently trading at $2.30, following the Chinese streaming platform’s second-quarter 2025 results that showed continued challenges. According to InvestingPro analysis, the stock appears undervalued despite surging over 20% in the past week.
The company reported an 11% year-over-year revenue decline in Q2 2025, with weakness across its membership, advertising, and content distribution segments, according to Benchmark. This follows a broader trend of revenue challenges, with InvestingPro data showing a 9.4% decline in the last twelve months, though the company maintains profitability with positive earnings.
Despite the disappointing quarterly performance, Benchmark noted that the third quarter shows early signs of recovery, with a stronger content lineup of dramas and variety shows driving improved audience engagement.
The research firm highlighted that new policies from China’s National Radio and Television Administration (NRTA) aim to shorten production cycles and increase creative freedom, potentially creating a more supportive industry environment for content producers like iQIYI.
Benchmark has revised its fiscal year 2025 projections downward for iQIYI while maintaining its Hold rating, citing ongoing competition from fast-growing mini-drama platforms and management’s cautious guidance as factors that continue to pressure near-term growth prospects.
In other recent news, iQIYI reported a larger-than-expected loss for the second quarter of 2025, with earnings per share at -0.14, missing the forecast of -0.03. The company also reported revenues of 6.63 billion RMB, falling slightly below the anticipated 6.65 billion RMB. This was accompanied by an 11% year-over-year decline in total revenue, with membership revenue dropping 9% and advertising revenue decreasing by 13%. Following these results, Jefferies raised its price target for iQIYI to $2.50 from $2.10, maintaining a Buy rating. Similarly, Tiger Securities increased its price target to $2.50 from $2.00, while keeping a Hold rating. Both firms considered management’s positive remarks about new regulations in the Chinese media industry during the earnings call. These developments highlight the challenges iQIYI faces, as well as analysts’ cautious optimism.
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