Why iQiyi Stock Dropped Today
Shares of Chinese video-streaming platform iQiyi (NASDAQ: IQ) were down 9% as of 1 p.m. EST Friday despite a lack of company-specific news. Rather, it seems today's drop is part of a broader pullback in high-flying China stocks amid growing fears over the fallout of a deadly coronavirus outbreak in the country.
The Shanghai Composite Index lost nearly 2.8% Thursday as the outbreak -- which has already resulted in 17 deaths among 600 confirmed cases -- prompted Chinese government officials to lock down travel to and from several large cities in an attempt to stem its spread. And it certainly doesn't help that, as of yesterday's close, shares of the so-called "Netflix of China" had soared more than 50% from their October 2019 low.
Image source: Getty Images.
Source Fool.com
