iQIYI stock price target raised to $2.50 from $2.00 at Tiger Securities

Investing.com - Tiger Securities raised its price target on iQIYI (NASDAQ:IQ) to $2.50 from $2.00 on Wednesday while maintaining a Hold rating following the company’s second-quarter results. The stock, currently trading at $2.33, has shown remarkable strength with a ~17% gain in the past week. According to InvestingPro data, 4 analysts have recently revised their earnings expectations upward for the upcoming period.

The Chinese streaming platform reported mixed results for Q2 2025, with total revenue declining 11% year-over-year to RMB 6.63 billion, slightly below expectations. Membership revenue fell 9% compared to the same period last year, while advertising revenue dropped 13%. This performance reflects broader challenges, with InvestingPro data showing a trailing twelve-month revenue decline of 9.43% and a gross margin of 24.05%.

Content distribution revenue experienced a sharp 37% year-over-year decline, which the company attributed to reduced barter and cash transactions. The only segment showing growth was "other revenues," which increased by 6% compared to Q2 2024.

Despite the revenue challenges, iQIYI’s profitability exceeded expectations, with non-GAAP operating profit reaching RMB 59 million. The company’s disciplined cost control measures and reduced content spending helped support its bottom line performance.

Management noted that subscription upgrades and bundled offerings helped partially offset revenue declines, though the overall membership trend remains negative compared to last year, with the company citing a lighter content slate and ongoing macro-driven budget cuts affecting advertiser spending. For deeper insights into iQIYI’s financial health and detailed analysis, including over 30 key financial metrics and exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, iQIYI reported a larger-than-expected loss for the second quarter of 2025. The company announced earnings per share of -0.14, which fell short of the forecasted -0.03. Revenues were also slightly below expectations, coming in at 6.63 billion RMB compared to the anticipated 6.65 billion RMB. This shortfall was attributed to declines in key revenue streams, including membership services and advertising. These developments have raised concerns among investors about the company’s financial health. The earnings miss and revenue decline are significant as they reflect ongoing challenges within iQIYI’s business operations. While analysts had projected better results, the company’s performance has not met those expectations.

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