Why iQiyi Stock Dropped 20% This Week

iQiyi (NASDAQ: IQ) shareholders lost ground to the market this week. A poorly received earnings report pushed shares down by over 20% through Thursday while the broader market rose. The China-based streaming video specialist's stock is now down roughly 60% so far in 2021.

The company's Wednesday earnings report contained some discouraging news about the streaming business. Sales rose just 6% in the period that ended in late September, which was below management's August forecast.

Subscriber gains were modest and advertising revenue declined. Executives pinned these shortfalls on a weaker pipeline of content releases, plus generally tough economic conditions in China.

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Source Fool.com