April 7, 2021, 7:01 a.m. EDT

Avoid iQIYI, Consider Alibaba, JD Instead - and Baidu

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Apr 07, 2021 (Baystreet.ca via COMTEX) -- At the end of last month, investors dumped the riskiest China-based stocks. iQIYI's /zigman2/quotes/203657421/composite IQ -0.83% stock collapse is unlikely to recover. The stock peaked at $28.97. Chances are high that it will find new lows in the near term.

IQ stock fell because of a block-trade on March 26 offered by none other than Goldman Sachs /zigman2/quotes/209237603/composite GS -1.53% . The firm sold shares at $15.50. This triggered a panic price drop on the day.

IQ's Q4 results are hardly impressive. It posted a 1% decrease in total revenue, to $1.1 billion. But it lost $200.4 million in the period. This is still a sharp drop from last year. The operating loss margin of 34% suggests that iQIYI will continue to bleed money this year.

Investors may consider bigger Chinese firms like Alibaba /zigman2/quotes/201948298/composite BABA -0.67% , JD.com /zigman2/quotes/205122565/composite JD -2.10% , or Baidu /zigman2/quotes/209050136/composite BIDU -3.39% . Not only do they have large market capitalizations but their business is durable. For example, Alibaba's e-commerce platform faces no competition. Its mobile channels grow every quarter. JD.com spun off its Cloud and AI business on March 31 at a $2.4-billion valuation. And Baidu is considered the Google of China.

iQIYI is a high-risk stock that investors should avoid.

COMTEX_384038120/2559/2021-04-07T07:00:37

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203657421/composite
US : U.S.: Nasdaq
$ 13.16
-0.11 -0.83%
Volume: 12.93M
May 12, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.47 billion
Rev. per Employee
$557,441
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/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 354.40
-5.52 -1.53%
Volume: 3.31M
May 12, 2021 4:00p
P/E Ratio
8.81
Dividend Yield
1.41%
Market Cap
$122.45 billion
Rev. per Employee
$1.31M
loading...
/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 219.90
-1.48 -0.67%
Volume: 20.37M
May 12, 2021 4:00p
P/E Ratio
25.93
Dividend Yield
N/A
Market Cap
$579.56 billion
Rev. per Employee
$622,130
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/zigman2/quotes/205122565/composite
US : U.S.: Nasdaq
$ 71.25
-1.53 -2.10%
Volume: 8.70M
May 12, 2021 4:00p
P/E Ratio
15.67
Dividend Yield
N/A
Market Cap
$107.40 billion
Rev. per Employee
$343,125
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/zigman2/quotes/209050136/composite
US : U.S.: Nasdaq
$ 183.29
-6.43 -3.39%
Volume: 6.03M
May 12, 2021 4:00p
P/E Ratio
19.33
Dividend Yield
N/A
Market Cap
$64.32 billion
Rev. per Employee
$378,365
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