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We recently compiled a list of the 10 Stocks Mirror Wall Street Downturn. In this article, we are going to take a look at where iQIYI, Inc. (NASDAQ:IQ) stands against the other stocks.
Shares on Wall Street traded lower on Thursday, as investors moved to unload positions to mitigate risks from uncertainties brought about by key economic factors such as President Donald Trump’s continued tariff threats and policy shifts.
The Dow Jones dived by 1.01 percent, the S&P 500 declined 0.43 percent, while the tech-heavy Nasdaq lost 0.47 percent.
Ten companies also mirrored a broader market downturn, finishing the trading session in the red territory amid a flurry of catalysts dampening investor sentiment.
To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
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iQIYI, Inc. (NASDAQ:IQ)
iQIYI, Inc. (NASDAQ:IQ) saw its share prices drop by 9.92 percent on Thursday to end at $2.18 apiece as investors unloaded positions following disappointing earnings performance last year while digesting announcements of fundraising activity.
In its latest earnings, iQIYI, Inc. (NASDAQ:IQ) swung to a net loss of RMB189 million from a RMB466 million attributable net income in the fourth quarter of 2024, while net income for the full year dropped by 60 percent to RMB764 million from RMB1.9 billion in 2023.
Revenues for the full year also dropped by 8.3 percent to RMB29.22 billion from RMB31.87 billion, while revenues for the quarter declined by 14 percent to RMB6.6 billion from RMB7.7 billion.
A few days after its earnings release, IQ announced that it was looking to raise $300 million through the issuance of convertible bond offerings over the next five years.
Under the terms, the unsecured notes will offer a coupon rate ranging from 4.25 percent to 4.75 percent annually, with payments to be made quarterly.
iQIYI, Inc. (NASDAQ:IQ)’s bond issuance is being managed by Bank of America, Morgan Stanley, and JPMorgan as joint bookrunners for the deal.
iQIYI, Inc. (NASDAQ:IQ) said proceeds from the issuance would be used to repay or repurchase existing debt securities, while the balance would be for general corporate purposes.
Overall IQ ranks 7th on our list of Thursday's top losers. While we acknowledge the potential of IQ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.