Week to date, shares of iQiyi (NASDAQ: IQ) were down 14% as of 12:21 p.m. on Friday, according to data provided by S&P Global Market Intelligence.

The stock fell earlier this week after the Chinese video streamer announced a large stock offering, which would dilute existing shareholders. However, one analyst was more upbeat about the upside potential.

On Jan. 17, iQiyi announced an offering of 76.5 million American depositary shares, representing about 10% of its market capitalization (total shares outstanding times the share price). It's normal for the market to discount a stock after new share issuances to account for dilution, but the sell-off might be overdone considering how far the stock fell over the last year.

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Source Fool.com