Long Position on IQ @ $23.75 on 4/10/2019 (Momentum)

iQIYI, Inc. (IQ) provides online entertainment services under the iQIYI brand name in China.

The company operates a platform that provides a collection of Internet video content, including professionally-produced content licensed from professional content providers and self-produced content.

It provides membership, content distribution, live broadcasting, and online gaming services. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is based in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited.

The Company licenses its contents from Netflix. Shares have formed a bullish "double bottom" and should breakout to the upside. The formation is supportedby the stock's 50-day moving average.  Its last earnings Iqiyi reported a 4th Quarter December 2018 loss of $0.70 per share on revenue of $1.0 billion. The consensus estimate was a loss of $0.69 per share on revenue of $961.5 million. 

The company said it expects first quarter revenue of $989.6 million to $1.00 billion. The current consensus revenue estimate is $972.9 million for the quarter ending March 31, 2019.

Entry Point: $23.75

Stop Loss: $22.50

52-Weeks Trading Range: $14.35 to $46.23

Target Price: $26.15

Updates

5/17/2019 9:40:25 AM

IQ closed at $19.40 after its poor earnings report

Position closed on 5/17/2019 at price of $19.40 with a -18.32% loss in 37 days.

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