Better Buy: iQiyi vs. Spotify
iQiyi (NASDAQ: IQ) and Spotify (NYSE: SPOT) are two of the biggest streaming media companies in the world. iQiyi, which was spun off from Chinese search giant Baidu in an IPO in 2018, is one of China's top video streaming services. Spotify, which went public via a direct listing the same year, serves the largest base of paid streaming music subscribers in the world.
iQiyi went public at $18 per share, but the stock still hovers around its IPO price due to concerns about its slowing growth, lack of profits, macro headwinds in China, and allegations of fraud. Spotify fared better, advancing about 45% from its initial reference price of $132, as it continued growing amid escalating competition from tech giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN).
Will Spotify continue outperforming iQiyi throughout the rest of 2020? Let's dig deeper to find out.
Source Fool.com
