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We recently published a list of 10 Stocks Kick Off Trading Week With Losses. In this article, we are going to take a look at where iQIYI, Inc. (NASDAQ:IQ) stands against other stocks kick off trading week with losses.
Wall Street’s main indices began the shortened trading week on a lackluster note, albeit finishing in the green, as investors continued to digest corporate earnings results.
The S&P 500 led the charge, recording a modest 0.24 percent gain. However, the Dow Jones and the tech-heavy Nasdaq posted gains of only 0.02 percent and 0.07 percent, respectively.
Ten companies performed poorly on Tuesday amid a series of negative catalysts that disappointed investors. In this article, we identified the 10 worst performers and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
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iQIYI, Inc. (NASDAQ:IQ)
iQIYI, Inc. (NASDAQ:IQ) dropped its share prices by 9.25 percent on Tuesday as investor sentiment was dampened by disappointing earnings performance last year.
In its earnings release, 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.
“We continued to execute with a focus on discipline and efficiency, which led to sequential growth in operating profit for the fourth quarter. The strong operational momentum is extending into the opening of 2025, marking an encouraging start for the year,” said IQ Chief Finance Officer Jun Wang.
Overall, IQ ranks 4th on our list of stocks kick off trading week with losses. While we acknowledge the potential of IQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as IQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.