Saturday , April 21 2018
Home / Tech / iQiyi: 'China's Netflix' shares dip in US stock debut

iQiyi: 'China's Netflix' shares dip in US stock debut

iQiyi screenshoImage copyright Iqiyi

Chinese video streaming service iQiyi – often called China's Netflix – made a rocky US stock market debut as it launched on the Nasdaq.

Shares opened slightly ahead of the $18 listing price, before quickly falling back and closing down 14%.

But iQiyi chief executive Gong Yu said he was not concerned about the "short term volatility".

The firm, controlled by Chinese internet giant Baidu, raised more than $2.2bn (£1.6bn) in the listing.

The initial public offering (IPO) gave the streaming service a valuation of about $12.7bn.

Despite the initial stock price fall, Mr Gong was confident about the firm's future prospects.

"Long term, you'll see how much value the IPO creates," he told the Reuters news agency.

Not profitable

iQiYi had more than 50 million subscribers by the end of 2017 and an average of more than 420 million mobile users per month, according to Reuters.

But while revenues have risen in recent years, iQiyi has never posted a profit since it launched in 2010.

You might also like:

In China, it competes with fellow streaming platforms Youku Tudou, which is owned by Alibaba, and Tencent Video.

In April 2017, iQiyi signed a licensing agreement with Netflix to stream some of the US provider's original content including Stranger Things and Black Mirror.

Last year, iQiyi posted a net loss of 3.7bn yuan (£425m; $592m) compared with 3.1bn yuan in 2016, though revenue jumped by 55% to 17.4bn yuan.

Baidu, which founded the business as Qiyi before later changing its name to iQiyi, is itself listed in the US.

About admin

Our goal is to help you improve your life and improve your standard of living and gain more knowledge about what to do in all cases whether Business and Investing or Arts and Entertainment or

Check Also

Ikea's TaskRabbit app back online after data breach

Image copyright TaskRabbit Image caption TaskRabbit is an odd jobs marketplaceIkea's odd jobs marketplace TaskRabbit is back online, following a "cyber-security incident" on Monday. TaskRabbit lets people find freelance workers to complete household tasks such as cleaning, gardening or assembling flat-pack furniture. The company says an "unauthorised user gained access to our systems" and "certain personally identifiable information may have been compromised". It pledged to notify any customer who had their data accessed in the attack. The TaskRabbit app and website were closed on Monday and Tuesday. And the company said it was working with law enforcement and a cyber-security company to investigate. The company has urged people to change their passwords on other websites and apps, if they have used their TaskRabbit password for other accounts. Ikea bought San Francisco-based TaskRabbit in 2017, although it is operated as an independent company within the Ikea Group. The ap..

Leave a Reply

Your email address will not be published. Required fields are marked *