Iqiyi Stock Intrinsic Value – IQIYI Reports Second Quarter Earnings Results for 2023
August 24, 2023
🌥️Earnings Overview
On August 22 of 2023, IQIYI ($NASDAQ:IQ) announced their earnings results for the second quarter of that year which ended on June 30. Revenue for the quarter totaled CNY 7802.3 million, representing a 17.2% increase from the same period in 2022. Net income was CNY 365.2 million, compared to the prior year’s loss of -214.0 million.
Price History
The results showed that the company’s stock opened at $5.2 and closed at $4.9, resulting in a 6.0% drop from its prior closing price of $5.2. Despite these decreases, overall IQIYI’s financial performance in the quarter was still strong. Despite a 6.0% drop in its stock prices on Tuesday, IQIYI’s total revenue and active user base remain strong indicators of the company’s future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Iqiyi. More…
| Total Revenues | Net Income | Net Margin |
| 31.22k | 892.01 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Iqiyi. More…
| Operations | Investing | Financing |
| 2.94k | 732.1 | -1.78k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Iqiyi. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.09k | 32.35k | 11.14 |
Key Ratios Snapshot
Some of the financial key ratios for Iqiyi are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.4% | – | 6.1% |
| FCF Margin | ROE | ROA |
| 8.5% | 11.1% | 2.7% |
Analysis – Iqiyi Stock Intrinsic Value
At GoodWhale, we conducted an analysis of IQIYI‘s wellbeing and our proprietary Valuation Line calculated the fair value of IQIYI share to be around $7.8. However, the current trading price of IQIYI stock is at $4.9, indicating that it is undervalued by a whopping 37.0%. This discrepancy shows that there could be potential for investors to take advantage of this attractive opportunity. More…
Peers
There is intense competition between iQIYI Inc and its competitors: Glory Star New Media Group Holdings Ltd, Vidaroo Corp, LiveOne Inc. These companies are vying for supremacy in the online video market in China. iQIYI has the advantage of being the first mover in the market and has been able to build a large customer base. It has also invested heavily in technology and content to make its platform more attractive to users.
However, its competitors are not far behind and are catching up quickly. They have deep pockets and are willing to spend heavily to gain market share. It is going to be a tough battle for iQIYI to maintain its lead in the market.
– Glory Star New Media Group Holdings Ltd ($NASDAQ:GSMG)
Glory Star New Media Group Holdings Ltd is a Chinese media company that focuses on online video and operates the Youku Tudou video streaming service. As of 2022, the company has a market capitalization of 98.1 million and a return on equity of 11.8%. The company was founded in 2006 and is headquartered in Beijing, China.
– Vidaroo Corp ($OTCPK:VIDA)
Vidaroo Corp is a publicly traded company with a market capitalization of 87.69k as of 2022. The company has a return on equity of 16.18%. Vidaroo Corp is a provider of online video advertising and marketing solutions. The company offers a range of video advertising products and services that help businesses to reach their target audiences through online video. Vidaroo Corp’s video advertising products and services include video ad creation, video ad targeting, video ad placement, and video ad reporting. The company also offers video marketing solutions that help businesses to promote their products and services through online video. Vidaroo Corp is headquartered in San Francisco, California.
– LiveOne Inc ($NASDAQ:LVO)
LiveOne Inc is a publicly traded company with a market capitalization of $59.47 million as of 2022. The company has a return on equity of 106.11%. LiveOne Inc is engaged in the development, marketing, and sale of live streaming products and services. The company’s products and services are used by broadcasters, content creators, and businesses to live stream their content to audiences around the world.
Summary
IQIYI reported strong revenue growth for the second quarter of 2023, with total revenue increasing 17.2% year-on-year to CNY 7802.3 million. Net income also shifted from a loss of -214.0 million in the prior year to CNY 365.2 million.
However, despite the impressive financials, the stock price fell on the day of the announcement, suggesting caution among investors. It will be important to watch if IQIYI can maintain this growth going forward and whether the stock market will reward them for their positive performance. Investors should also be aware of any potential risks that may affect the company’s future profitability, such as increased competition or changes in the regulatory environment.
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