74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.07% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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    Bullish sentiment for the iQIYI share price

    It is usually the case that even with the most bullish of stocks and where market sentiment is high, the announcement of results that are in line with expectations can have a negative impression on the share price.

    This has been the case with streaming giant iQIYI shares even though the company’s main headline numbers at the Q3 stage matched analysts expectations. Consequently, the iQIYI share price has declined from post 2019 highs near $28, back to the $22 zone.

    Fortunately for the bulls the shares have retreated towards the area of the 200 day moving average at $21.50 and an uptrend line from May at $22. The prospects for the iQIYI share price is now that after the initial negative price action in the wake of the Q3 results, the overall positive performance of the company on a fundamental basis is likely to kick in.

    Learn more about shares trading with ATFX

     

    IQ shares pandemic rotation

    One of the characteristics of the stock market since the pandemic began in March this year, has been the rotation by investors from value stocks to high growth and momentum plays. The major beneficiaries have of course been stocks in the tech space, with iQIYI one of the leaders in this respect. However, judging by the latest results, even here there is the shadow of COVID-19.

     

    Streaming space growth for IQ shares

    For instance, online advertising revenue fell by 11% and content distribution revenue down 42%. Nevertheless, the setbacks were largely in the more minor income streams, and clearly within the streaming space which is growing rapidly.

    Therefore investors did not have much more to grapple with than the headline number of subscriber numbers down from 105.8 million to 104.8 million. This was the trigger for the post announcement IQ share price decline, although the question is whether it was justified or not?

     

    IQIYI share price premium rating

    As far as the near term it could be that iQIYI shares have to run in order to stand still fundamentally. This point was underlined by comments from the company suggesting that revenues would be flat as compared to last year, standing around $1.1bn. This, along with a lack of visibility in terms of what the fresh growth drivers may be could make it difficult for bulls of the stock to gain traction. Given the premium rating the shares have, it may have to wait until a market beating Q4 update is unveiled that a push for the stock to fresh 2 years highs may be possible.

     

    How to trade iQIYI shares

    Open a live or demo account with ATFX to get started today. Trade shares on leverage, take up a long or short position when trading with CFDs and make potential gains from price movements.

    1. Register for an account or log in to your existing account

    2. Open MT4 either on your desktop or mobile

    3. Search for iQIYI shares in the market watch or symbols window

    4. Choose your position size

    5. Hit buy or sell, and then confirm the trade

     

    Mist Theater popularity

    Perhaps the key to what happens next as far as the iQIYI share price is the overall state of the Chinese streaming market. Analysts have suggested that the space has not grown as much as expected over the past couple of years, but is expected to re-rate positively from now. If this proves to be the case, initiatives that iQIYI have made this year such as its hit Mist Theater, could prove to be growth leaders. Indeed, so far this content library of short suspense thrillers comprising five dramas has already generated 68 million subscribers, and proved to be the TikTok of its space in terms of popularity.

     

    IQ share price daily chart

    Daily chart showing iQIYI share price daily movements for 2020

     

    Looking to start trading and don’t know where to start? We’ve got the perfect guide to help you understand exactly how to start trading

    It’ll show you exactly what you need to do to get set up and start trading shares like iQIYI.

    Last Updated: 19/11/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

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