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Cross-posted on Saul's board:

Despite it being a Chinese company and the problems/risks that can be present with that, I took the plunge (got shares at $18.35).

They reported earnings this afternoon (call is tonight at 9:00 pm):
https://seekingalpha.com/pr/17143578-iqiyi-announces-first-q...

Here are a few of the key things that caused me to go ahead and buy the first shares of any company that I have added within my newly-started Roth IRA. If you aren't familiar with them, iQiyi is a Chinese company that provides streaming video with a hybrid ad-supported and subscriber model. It is often referred to as the Netflix of China for a quick shorthand. They IPO'ed March 29th, as they had previously been part of Baidu (BIDU). Here's a recent Seeking Alpha article that I actually have yet to read: https://seekingalpha.com/article/4164677-iqiyi-chill-netflix...

Market Cap at present is about $13.3 billion.
Most recent quarter's revenue came in at $777.6 million
Year-over-year revenue growth of 57% for this quarter (67% for subscription side; 52% for ad-supported side)
Operating loss margin went from -34% to -22% (trending in the right direction)

Knowing how massive China's population, having seen what Netflix has done, and being of the opinion that connected TV advertising will be pretty big deal (big part of why I own The Trade Desk), I went ahead and started a small position, with plans to add along the way if the thesis plays out. I think they currently have about 60-something million paying subscribers, compared to a bit more than 100 million for Netflix and the recently-announced 100 million Amazon Prime subscribers......for 2 comparative data points.

volfan84
long IQ (as of today after-hours)
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Vol,
I own IQ and BIDU which still owns majority of iQiyi.

Will comment more after i see transcript from conf call, but previous numbers on DAU and MAU were great and very impressive when compared to Netflix.

They also have a combo ad/subscription revenue model, which I believe is the future for most streaming companies in future.

Also agree on the TTD synergy here.

Dreamer
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You and I might be fairly lonely "getting rich" thanks to TTD, Dreamer.

I am quite surprised by the lack of more enthusiasm for The Trade Desk. It is a recommendation in 3 different TMF services, including one that is getting axed (as announced today).
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Which service got axed?

I am weighing SA renewal vs Rulebreakers.

I do think SA had a lot of great stocks but also some head-scratchers. Rulebreakers is more expensive but i do like disruptive companies.
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If you look, should usually be able to find a renewal link for about $50/year for either of Rule Breakers or Stock Advisor.

Hidden Gems, Income Investor, and Inside Value are all being rolled into Market Pass, which will include access to Stock Advisor and Rule Breakers.
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Here is a Gary Alexander article on iQiyi.......title seems like he's bullish on the quarter (haven't read it yet).

iQIYI: Great Results Underline Bullish Potential https://seekingalpha.com/article/4167202?source=ansh $IQ

volfan84
Long IQ (iQiyi)
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Well written article, thanks! Does mention lock up expires early May;

"With iQIYI's guidance calling for 42-48% y/y growth in Q2, the company is likely to see continued growth and loss-shrinking over the coming year. Despite being relatively unknown in the markets (as are most U.S.-listed Chinese stocks), iQIYI is one of the choicest growth stories in the internet sector today, and once the lockup period expires in early May, there may be a deluge of Wall Street analysts coming out with glowing praise for the name."
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Ahhh yeah, lockout period prevents analysts from coming out with stuff.....after seeing the numbers I was almost thinking their may be some "Buys" or "overweights" or "outperforms" coming out on Friday, but a lockout period would explain why that didn't happen.
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Unprofitable, but that was expected as they are blatantly in invest/grow mode. Never stopped Netflix stock either.


I see this as an easy double if growth continues rest of q2 and q3 and the analysts start cheering about the dau/mau, ad rev, and subsciber rev.

China is mobile-first. iQiyi is combo of youtube/netflix in largest target mobile group (china) in the world. They have learned what has worked for netflix and others and are able to steal the best ideas vs trial and error.

Ow ing Baidu BIDU also gets you exposure, but I own both.

Low P/S for IQ and BIDU compared to most Saul and NPI stocks.

Dreamer
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Iq fcf is -980 m ttm. Have they addressed how they will get to/finance their way to neutral fcf and how long it will take?

The idea of a young Chinese Netflix is enticing yet...
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