Why iQiyi Stock Jumped 12% This Week
iQiyi (NASDAQ: IQ) trounced the market this week. The Chinese entertainment stock gained 12% through Thursday trading compared to a 2% drop in the S&P 500, according to data provided by S&P Global Market Intelligence. The move helped push returns above the market's, with the stock at a 1% decline so far in 2022 compared to a 16% drop in the S&P 500.
The rally came as investors became more optimistic about iQiyi's growth and earnings potential.
iQiyi said in late May that it is still losing subscribers on its platform. The 4% drop in that core growth metric contributed to 9% lower sales, year over year. The streaming content business is being pressured by slowing advertising spending, rising competition, and a weakening economic environment.
Source Fool.com
