iQiyi: The Netflix of China

Ah, yes, another online-streaming platform company.

But this time, in China.

iQiyi (Ticker: IQ) recently got listed on NASDAQ at an IPO price of ~$18 per share on March 29, 2018. After falling 13% on its first day of trading, down to ~$15.55, just 3 months later, iQiyi has enormously grown almost 150% and is now at a price of $44 per share. (As of June 20th, 2018)

Launched in April 2010, iQiyi (IQ) is one of the world’s largest online-video streaming platform, with over 6 billion hours streamed monthly, and 500 million monthly active users, iQiyi is giving Netflix a run for their money.

iQiyi is truly the Netflix of China. In April 2017, iQiyi came to a licensing agreement with Netflix to stream Netflix’s original content on their platform. As well, iQiyi is looking to push their own original content production, much like how Netflix has become a prominent production company as much as they are a video-streaming platform.

Let’s take a look at some numbers:

iQiyi (IQ)

th (1).jpg

  • Founded in 2010
  • Market Cap (Value): ~$31 billion (grew substantially in past months)
  • IQ current price: $44/share (as of June 18th, 2018)
  • 6 billion streaming hours (monthly)
  • 500 million active users (monthly)
  • 50 million PAID subscribers
  • Available in China, Taiwan, and South Korea, and looking to launch in other parts of Asia
  • ~150% growth in roughly 3 months ($18 >>$44)

Netflix (NFLX)

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  • Founded 1997
  • Market Cap (Value): ~$169 billion (as of June 18th, 2018)
  • Netflix current price: $390/share (as of June 18th, 2018)
  • Over ~180 million streaming hours DAILY.
  • 125 million total PAID subscribers (most), worldwide
  • Grew ~150% in past year
  • The fastest growing company in the stock market in past 5 years (1175% growth)
  • Recently partnered with the Obama family to produce exclusive content & series

Right now, I don’t own either Netflix or IQ stock, but am looking extremely closely at both platforms and plan to buy them very soon. I believe streaming-services currently dominate entertainment (video, movies, TV shows, video game streaming) and will only continue to grow in the future.

For now, this is just a quick update for anyone interested in looking into both of these companies more themselves.

IQ has a lot of potential, and China is a huge market, with much of Asia also a great opportunity for iQiyi to target. As we’ve seen with Tencent, IQ has the upside of dominating the Asian markets and then pushing growth and opportunity in foreign Western markets as well. China, in general, is great at imitating American business models, and often proving to be incredibly competitive. (Baidu vs. Google, IQ vs. Netflix, Alibaba vs. Amazon)

I will look to provide updates in the future on the status of both of these companies.

Don’t miss out on the streaming revolution!

Happy Investing!


Other DTF Articles:

WTF Explanation Series

If you have more questions, please feel free to reach out. I will gladly help you with any concerns, and we can hop on a call/chat if you want.

Email me: downtofinanceDTF@gmail.com

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Disclaimer:

I am not a professional financial advisor or planner as much as I’d like to be. All thoughts on the DTF Website are strictly my opinions unless otherwise stated. I understand there may be errors in my writing. My articles are not meant to be offered as professional advice, as I am currently learning a lot about finance myself. Please always do your own research and due diligence when it comes to financial decisions. Money is very important! I may own some stocks discussed in this article.

 

 

 

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