In this article, we discuss the 10 best long-term penny stocks to buy now along with the current market conditions and their potential effect on penny stocks.
Analysis of the Current Market Environment
A market analysis discussion was held on July 8 with a CNBC panel comprising Carson Group chief market strategist, Ryan Detrick, and Wealth Enhancement Group SVP, Nicole Webb. Both panelists believe that we are in a bullish market and the trend is expected to continue. Webb expressed optimism about the market’s potential to churn higher, even during the current overbought environment. She expects continued defensiveness and earnings growth from mega-cap tech companies. Webb is hopeful for a shift towards rate normalization rather than abrupt cuts.
Ryan Detrick shared bullish sentiments, basing his outlook on the improving inflation data. He pointed out that 34% of the core Personal Consumption Expenditures (PCE) components are experiencing deflation, with notable declines in used car prices and grocery store prices. He expects the Fed to cut rates in September and November, and he believes that these cuts will be in response to declining inflation rather than a sign of economic weakness.
When the CNBC interviewer noted the significant gains leading tech companies contributed and questioned the reliance on these firms for sustained market growth, Nicole Webb acknowledged the complexity of these market themes. However, she maintained a positive outlook and expects broader market earnings growth in the second half of the year. She mentioned favorable conditions for rate cuts and ongoing advancements in AI-driven productivity and cost-cutting as supportive factors for the bull market.
Penny Stocks: Opportunities and Risks in the Current Market Environment
The current market conditions as discussed above present a mixed bag for penny stocks. On one hand, the overall bullish sentiment and expected rate cuts could provide a favorable environment. Lower interest rates typically reduce borrowing costs and can lead to increased investment in riskier assets, including penny stocks. Additionally, a strong economy and rising market indices may boost investor confidence, which could potentially drive more speculative investments into lower-priced stocks.
However, there are also significant challenges. The reliance on mega-cap tech companies for market gains suggests that investors are favoring well-established, financially stable firms over riskier, smaller companies. This preference for safety and quality can limit the flow of capital into penny stocks. Furthermore, the high valuations and earnings expectations for larger firms mean that any market corrections or shifts in sentiment could disproportionately impact smaller, more volatile stocks. This would especially be true if we take Morgan Stanley’s Mike Wilson’s comments into account. In a Bloomberg TV interview on July 8, he said that there is a high chance of a 10% correction between now and the US election and added that the third quarter of the current year is going to be “choppy.”
Overall, while some positive macroeconomic trends could benefit penny stocks, investors need to be cautious. The market’s current emphasis on stability and proven performance may not bode well for these highly speculative investments. Thorough research and a clear understanding of the risks should be on top priority for those considering penny stocks in this environment.
10 Best Long-term Penny Stocks to Buy Now
Our Methodology
For this article, we identified around 20 fundamentally strong penny stocks (trading below $5 on July 18) from several financial media websites and sources. We only chose the stocks that have been profitable for at least over a year, showed signs of earnings growth, and have significant future growth prospects. We narrowed down our list to 10 stocks most widely held by institutional investors. The stocks are listed in ascending order of their hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Long-term Penny Stocks to Buy Now
10. Yalla Group Limited (NYSE:YALA)
Share Price as of July 18: $4.45
Number of Hedge Fund Holders: 6
Yalla Group (NYSE:YALA) is a leading provider of mobile applications within the Middle East and North Africa (MENA) region, tailored for regional audiences. The company’s flagship offerings include Yalla, a voice-centric group chat platform that promotes community engagement through real-time interactions, and Yalla Ludo, a popular casual gaming application. It is the largest MENA-based online social networking and gaming company.
According to Newzoo, MENA is the fastest-growing games market in the world. In 2023, the global games market saw a growth of 0.6% while the MENA region’s games market grew by nearly 5%. Newzoo predicts this market to reach $206 billion over the next two years, which creates a significant growth opportunity for Yalla Group (NYSE:YALA) due to its dominant position in the region.
Another significant milestone in Yalla Group’s (NYSE:YALA) growth strategy is its recent invitation to join the UK Interactive Entertainment Association (Ukie), the world’s oldest video game and interactive entertainment trade body. Ukie represents 2,000 game businesses across the U.K., including major video game platforms. Joining Ukie could strengthen the company’s visibility and credibility in the global gaming industry. This recognition can attract more users, investors, and potential partners, which further solidifies the company’s position as a leading gaming company in the MENA region.
Another important future growth prospect for Yalla Group (NYSE:YALA) is its strategic focus on expanding into new geographic markets outside the MENA region, particularly in South America and Southeast Asia. This expansion provides significant growth opportunities through new user acquisition and increases its global market presence.
As of March 31, 6 hedge funds had stakes in Yalla Group Limited (NYSE:YALA), worth $6.4 million. Israel Englander’s Millennium Management is the most prominent shareholder of the company with 745,756 shares worth $3.6 million.
9. Taseko Mines Limited (AMEX:TGB)
Share Price as of July 18: $2.22
Number of Hedge Fund Holders: 8
Taseko Mines Limited (AMEX:TGB) is a prominent player in the copper mining sector, specializing in the acquisition, development, and operation of mineral properties. The company focuses on exploring rich deposits of copper, molybdenum, gold, niobium, and silver. Its flagship asset is the Gibraltar mine situated in British Columbia, which is the second-largest open-pit copper resource in Canada. After acquiring the last 12.5% stake in the mine in March 2024, Taseko Mines (AMEX:TGB) now has 100% interest in the mine. Additionally, the company holds significant interests in strategic projects including the Yellowhead copper project, the Aley niobium project, and the New Prosperity gold and copper project, all located in British Columbia.
The recent rise in copper prices bodes well for Taseko Mines (AMEX:TGB) as they have risen nearly 13% year-to-date, as of July 17 at $9,553 per metric ton year-to-date. Analysts and financial institutions have revised their forecasts amid bullish sentiment toward copper. Citi, for instance, predicts a continuation of what it terms the second secular bull market for copper in the 21st century. It expects prices to average $10,000 per metric ton by the end of 2024, with a further rise to $12,000 by 2026 under its base-case scenario as reported by CNBC on April 10. The firm also highlights the potential for even higher prices, exceeding $15,000 per metric ton in its bull-case scenario if a robust cyclical recovery occurs.
The surge in copper demand is supported by the metal’s critical role in renewable energy generation, electric vehicles, and grid infrastructure essential for achieving net zero emissions which bodes well for Taseko Mines (AMEX:TGB). The company’s Gibraltar mine has an impressive processing capacity of 85,000 tons per day and over its operational life, it is expected to achieve an average annual copper production of 130 million pounds. Additionally, the company is preparing to commence production at the Florence Copper project by Q4 2025. This in-situ copper recovery project (copper extracted from ore deposits without traditional open-pit or underground mining) is expected to produce 85 million pounds of LME Grade A copper annually once it is fully operational.
In addition, Taseko Mines (AMEX:TGB) has managed its exposure to copper price volatility through strategic hedging measures. Looking ahead to 2025, the company has implemented several key strategies. It has established a minimum price guarantee of $4 per pound for all copper sales throughout the year, which protects it from potential downside risks in the copper market. Moreover, the company has already hedged 42 million pounds of copper for $3.75 per pound, which ensures a predetermined revenue stream for this period. All these factors combined make Taseko Mines (AMEX:TGB) a stock worthy of attention.
As of the first quarter of 2024, 8 hedge funds had stakes worth $17.1 million in Taseko Mines (AMEX:TGB). While Diamond Hill Capital was the company’s largest shareholder with shares worth nearly $8 million, other prominent investors also looked at the stock favorably. Millennium Management increased its stake in the company by 1600% to shares worth $2.6 million and D E Shaw initiated a position worth $1.675 million in the company in Q1.
8. FinVolution Group (NYSE:FINV)
Share Price as of July 18: $4.96
Number of Hedge Fund Holders: 11
FinVolution Group (NYSE:FINV) takes the 8th spot on our list of the best long-term penny stocks to buy now. The company is China-based and runs a fintech platform that connects borrowers with financial institutions. The company has a diverse client base, including individual borrowers, institutional funding partners, and individual investors.
The company offers a variety of services designed for these clients, such as different types of loans including standard and consumer loans for borrowers. It also provides investment services for individual investors, which include self-directed and automated investing tools. Additionally, the company connects borrowers with institutional funding partners and provides credit assessment services to streamline the lending process.
At the close of the first quarter, FinVolution Group (NYSE:FINV) showed a robust liquidity position with total cash and cash equivalents plus short-term investments amounting to RMB8.5 billion (1 RMB = US$0.14), which marked a 10% increase from the previous year. This strong balance sheet shows the company’s capacity to support its ongoing business expansion initiatives and explore new growth opportunities while also maintaining its commitment to returning significant value to its shareholders.
In line with its shareholder-centric approach, FinVolution Group (NYSE:FINV) executed a share repurchase program and deployed over $27 million in the first quarter of 2024 alone. This initiative reflects an increase of approximately 1x compared to the previous year’s repurchase activities, which highlights the management’s confidence in the company’s intrinsic value and its commitment to improving shareholder returns. Additionally, since the inception of its capital return program in 2018, the company has returned a substantial $632 million to shareholders through buybacks.
Furthermore, in 2023, FinVolution Group (NYSE:FINV) distributed dividends totaling 62 million shares alongside its significant share repurchase program, which amounted to approximately $100 million. This combined payout represented a smart allocation of resources and was equal to around 49% of the company’s net income for the year.
Looking ahead, FinVolution Group (NYSE:FINV) is committed to creating long-term shareholder value through sustained high-quality growth and a robust capital return program. The company’s approach, which combines dividends and share repurchases, shows its stance on enhancing capital capability and delivering tangible returns to shareholders.
In Q1, 11 hedge funds held stakes in FinVolution Group (NYSE:FINV), with positions worth $28.142 million. As of March 31, GLG Partners is the most significant shareholder in the company with a position worth $13.54 million.
7. UP Fintech Holding Limited (NASDAQ:TIGR)
Share Price as of July 18: $4.24
Number of Hedge Fund Holders: 13
UP Fintech (NASDAQ:TIGR) is a China-based company that runs an online brokerage platform for global investors. The company’s mobile and online trading platform enables users to trade in equities, options, warrants, and other financial instruments across multiple exchanges. The company’s services include trade order placement and execution, account management, cryptocurrency trading services, wealth management services, and more. The company caters to a range of clients, including individual investors, corporate clientele, and institutional partners.
UP Fintech (NASDAQ:TIGR) has established itself in the fintech sector through its commitment to better user experience and technological innovation. The company’s continuous investment in research and development has solidified its position in the market, which allows it to introduce cutting-edge features that cater to diverse investor needs. Throughout Q4 of 2023, the company expanded its footprint by launching localized features tailored to different markets.
UP Fintech (NASDAQ:TIGR) made significant strides in its operations across Singapore and Hong Kong in Q1. In Singapore, the launch of the Tiger Vault debit card, in partnership with a local licensee, enables users to earn fractional shares through everyday spending, linking consumption directly with stock ownership. Additionally, the company introduced cash boost accounts tailored to Singapore’s credit system, which furthers accessibility to investment opportunities without requiring an initial deposit.
In Hong Kong, UP Fintech (NASDAQ:TIGR) upgraded its regulatory framework by expanding its Type 1 license to include virtual asset billing services for professional investors. This strategic move facilitated the launch of cryptocurrency trading services in April, establishing the company as the first mainstream online brokerage in Hong Kong to offer such services. Furthermore, the company obtained a Type 9 license to extend its offerings to include asset management services, which cater to the evolving needs of investors.
Moreover, UP Fintech (NASDAQ:TIGR) introduced enhancements aimed at improving trading efficiency and risk management. The introduction of overnight trading capabilities allows users across the Asia Pacific region to trade US stocks and ETFs during local market hours, which allows the company to capture more market opportunities and optimize trading strategies. Additionally, improvements to auction trading capabilities, such as US option early access and do not access equips, enable clients to navigate volatility risks associated with in-the-money options and address liquidity challenges effectively.
As of Q1, UP Fintech (NASDAQ:TIGR) was held by 13 hedge funds in the first quarter and the stakes amounted to $19.43 million. GLG Partners is the top shareholder of the company and has a position worth $9.6 million as of Q1.
6. Custom Truck One Source, Inc. (NYSE:CTOS)
Share Price as of July 18: $4.80
Number of Hedge Fund Holders: 13
Custom Truck One Source, Inc. (NYSE:CTOS) is a Missouri-based provider of specialty equipment and services for infrastructure-focused end markets. It runs through three segments, Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The company provides a range of services, including sales, rentals, customization, remanufacturing, maintenance, and disposal of commercial trucks and heavy equipment.
The company offers trucks, whether new or pre-owned, that are customized to meet clients’ precise needs. It also offers flexible financing solutions, making it possible for businesses of various sizes to acquire necessary equipment without substantial initial expenses. Furthermore, Custom Truck One Source (NYSE:CTOS) provides ongoing support throughout the equipment’s lifespan, including maintenance and repair services. The company has a strong focus on transmission and construction projects and offers its services and products to utility, telecom, and construction companies working on transmission line projects, grid modernization, and other infrastructure initiatives.
Custom Truck One Source (NYSE:CTOS) has made strategic advancements over the past year to meet the robust demand in the equipment rental and sales sector. The company’s proactive approach includes a substantial investment in inventory, which is responsible for the fulfillment of customer orders and rental needs across a wide range of products. In Q1 2024, the company’s TES segment saw revenue rise by 14.7% to $239.9 million from $209.2 million in Q1 2023.
The growth was mainly due to improved inventory management following supply chain enhancements in 2023. High backlog levels also boosted production and delivery capabilities during Q1 2024. By strategically building inventory throughout 2023 and into 2024, the company is well-positioned to meet its production, fleet expansion, and sales goals for 2024 and the future.
Additionally, the company has expanded its presence in key geographic markets with recent branch openings in Casa Grande, Arizona, Sacramento, California, and Salt Lake City, Utah. This expansion is aimed at enhancing service accessibility and market penetration in previously underserved regions. By bolstering its footprint, the company not only strengthens its market position but also enhances its ability to deliver tailored solutions and rapid support to regional customers.
In Q1, 13 hedge funds held stakes in Custom Truck One Source (NYSE:CTOS), with positions worth $26 million.
5. Silvercorp Metals Inc. (NYSE:SVM)
Share Price as of July 18: $3.68
Number of Hedge Fund Holders: 13
Silvercorp Metals Inc. (NYSE:SVM) is a Canada-based company that acquires, explores, develops, and mines mineral properties for silver, gold, lead, and zinc metals. The company currently has an interest in mines in the Henan Province, Guangdong Province, and Hunan Province in China and is moving to establish its footprint in Ecuador through an acquisition of Adventus Mining Corp. In the first quarter, 13 hedge funds held positions in Silvercorp Metals (NYSE:SVM) worth $27.7 million. As of March 31, Two Sigma Advisors is the most prominent shareholder in the company and has a position worth $5.107 million.
Silvercorp Metals (NYSE:SVM) has recently made moves toward adding to its operational portfolio through a strategic acquisition. The company has announced plans to acquire Adventus Mining Corp. in a deal valued at approximately $150 million, structured entirely with shares. The transaction is expected to be finalized in the third quarter of 2024 and furthers the company’s goal to expand its footprint in the mining sector.
A big part of this acquisition is Adventus’ flagship asset, El Domo, an advanced copper-gold project located in Ecuador, which is already fully permitted. This acquisition promises significant benefits for Silvercorp, including geographic diversification into a new and promising mining jurisdiction. Moreover, El Domo’s advanced stage and permit status means that the project is well-positioned for immediate advancement toward production.
In addition to geographic diversification, Silvercorp Metals (NYSE:SVM) stands to gain substantial metal diversification. The acquisition will grow Silvercorp’s production capabilities in key metals such as silver, lead, zinc, and now copper and gold, further strengthening its position as a diversified metals producer. Adding El Domo enhances the company’s production growth in the short term and provides strategic flexibility with the Condor project, currently in the Preliminary Economic Assessment (PEA) stage.
From a resource perspective, the acquisition significantly improves Silvercorp’s (NYSE:SVM) precious metals exposure. The combined resources of El Domo and Condor will increase the company’s silver-equivalent ounces to 473 million, a substantial increase from the current 217 million ounces. On a copper-equivalent basis, the addition of El Domo and Condor’s contributions will increase the company’s resources to 667 million tonnes, up from 361 million tonnes.
Silvercorp’s (NYSE:SVM) management expects that this acquisition will not only increase scale but also enhance the company’s growth profile. The strategic alignment of these assets positions Silvercorp (NYSE:SVM) as a significant player in the green metals sector. It is one of the best long-term penny stocks to buy now and is positioned well to take advantage of the global demand for diversified metal resources.
4. Banco Santander, S.A. (NYSE:SAN)
Share Price as of July 18: $4.83
Number of Hedge Fund Holders: 13
Banco Santander, S.A. (NYSE:SAN) is a Spain-based multinational bank that provides various financial services, including retail and commercial banking, investment banking, and private banking. The bank has a strong footing in Europe, Latin America, and the United States and is one of the largest banks in the world with around 166 million customers and €1.184 trillion (€1 = US$1.09) worth of customer deposits and mutual funds. It is one of the best long-term penny stocks to buy now.
Banco Santander (NYSE:SAN) maintained a robust fully loaded capital ratio of 12.3% in Q1, which indicates its strong capital generation capabilities and effective management of risk-weighted assets. The quarter saw the bank achieve an organic capital generation of 32 basis points.
Banco Santander (NYSE:SAN) continues to deploy capital to enhance profitability and optimize asset mobilization. The disciplined approach to capital allocation has resulted in a new book return on risk-weighted assets reaching 2.8% for the quarter, which surpasses that of its existing portfolio and exceeds last year’s performance. The establishment of a centralized asset management desk is evidence of its commitment to improving capital deployment efforts.
It is worth noting that Banco Santander (NYSE:SAN) successfully divested €30 billion in risk-weighted assets last year at a lower cost of capital compared to new origination, and it has plans to further scale this initiative in the current fiscal year.
At a stake value of $727.624 million, 13 hedge funds held positions in Banco Santander (NYSE:SAN) in the first quarter.
3. Baytex Energy Corp. (NYSE:BTE)
Share Price as of July 18: C$5.04 (C$1 = US$0.73)
Number of Hedge Fund Holders: 14
Baytex Energy Corp. (NYSE:BTE) is a Canada-based company that acquires, develops, and produces crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford, the United States. Additionally, the company holds interest in various lands, including the Eagle Ford property in Texas, Viking and Lloydminster properties in Alberta and Saskatchewan, and Peace River and Duvernay properties in Alberta.
Baytex Energy (NYSE:BTE) is set for robust performance in 2024, as evidenced by its strong production guidance and impressive free cash flow projections. The company expects production levels to range between 150,000 to 156,000 barrels of oil equivalent (BOE) per day for the year. The forecast is supported by the efficiency gains in its exploration and development (E&D) program, combined with higher expected production volumes and improved crude oil realizations across its key operating regions, including Canada and the Eagle Ford in Texas.
In Canada, Baytex Energy (NYSE:BTE) is benefiting significantly from the completion of the Trans Mountain Pipeline expansion, which has improved the company’s oil export capacity from Western Canada. The strategic infrastructure improvement is expected to increase revenue streams as it is expected to refine transportation logistics and reduce operational costs. Similarly, in the Eagle Ford region, the company benefits from its exposure to premium U.S. Gulf Coast pricing for its light oil and condensate production, which has led to margins and overall profitability.
Baytex Energy’s (NYSE:BTE) focus remains on honing its acreage and operational efficiencies. In the first quarter of 2024, the company successfully brought three upper Eagle Ford wells online, with plans for additional well completions throughout the year. Moreover, a refracturing operation in the Medina unit is anticipated to yield attractive returns, which is a sign of the company’s preemptive approach to maximizing production from existing assets. The company has identified further refracturing opportunities that complement its capital expenditure program to better its overall cost management and operational effectiveness.
Baytex Energy (NYSE:BTE) is committed to driving down drilling and completion costs and has targeted an 8% reduction in operated drilling and completion costs per completed lateral foot compared to 2023. The efficiency focus of the company can be seen in the company’s successful execution of its 2024 drilling program in the Pembina Duvernay and Viking regions. The company achieved significant improvements in drilling performance, with a 21% reduction in drilling days and a 10% decrease in drilling costs for its Duvernay operations during the first quarter of the year.
In the first quarter, 14 hedge funds had stakes in Baytex Energy (NYSE:BTE), with total positions worth $94.482 million. As of March 31, Millennium Management is the largest shareholder in the company and has a position worth $34.15 million.
2. Ambev S.A. (NYSE:ABEV)
Share Price as of July 18: $2.10
Number of Hedge Fund Holders: 14
Ambev S.A. (NYSE:ABEV) headquartered in Brazil, is a subsidiary of Interbrew International B.V. and produces, distributes, and sells alcoholic and non-alcoholic beverages. It is a prominent beverage company and has established a strong presence across Latin American and Caribbean markets. The company’s portfolio includes well-known beer brands such as Brahma, Antarctica, Brahva, Budweiser, and more. Its non-alcoholic beverage portfolio showcases various brands, including Gatorade, H2OH!, and Pepsi Black, among others.
Ambev (NYSE:ABEV) maintains a diverse portfolio of alcoholic and non-alcoholic beverages, strategically positioned to benefit from changing consumer preferences and new market opportunities as mentioned in our previous articles on 10 Best NYSE Penny Stocks To Buy. The company holds the top position in Brazil’s beverage industry, commanding more than 60% of the beer market and maintaining a robust presence throughout Latin America. This leadership in the Brazilian beer market serves as a strong platform for revenue expansion and growth. According to the Brazil Beer Market Overview, 2028 report by Bonafide Research, the Brazilian beer market is expected to grow at a compound annual growth rate (CAGR) exceeding 4.83% from 2023 to 2028. The growth forecast presents significant opportunities for Ambev S.A. to enhance its market share and profitability.
In Q1, key brands like Corona, Spaten, Brahma, and Budweiser have achieved remarkable success, with overall brand health indicators reaching unprecedented levels. The company has shown significant growth in the premium and super-premium segments, driven prominently by Corona’s expansion of over 70%. In the premium brand segment, Ambev has expanded its market share for five consecutive quarters. The Budweiser family saw a 55% increase in volume in the first quarter, reaching an all-time high.
Additionally, core brands such as Antarctica and Brahma have demonstrated robust growth rates slightly exceeding industry averages, as highlighted in the Q1 2024 earnings call. Ambev’s (NYSE:ABEV) balanced growth strategy, focusing on both core products and expanding premium and core plus segments, has been achieved alongside stable trade inventory levels, reflecting effective supply chain management.
CEO Jean Jereissati has emphasized the company’s successful innovation efforts. New products like Stella Pure Gold and Budweiser Zero have collectively grown by over 40% in Q1, compared to the previous quarter, indicating strong consumer adoption and market responsiveness. Ambev’s (NYSE:ABEV) is committed to driving growth through continuous product innovation and adaptation to meet evolving consumer preferences. The stock is one of the best long-term penny stocks to buy now.
Ambev (NYSE:ABEV) was part of 14 hedge funds’ portfolios in the first quarter with a total stake value of $166.139 million. First Eagle Investment Management is the biggest shareholder in the company and has a position worth $775.509 million as of Q1.
1. iQIYI, Inc. (NASDAQ:IQ)
Share Price as of July 18: $3.65
Number of Hedge Fund Holders: 15
Our top stock pick in the list, iQIYI, Inc. (NASDAQ:IQ) offers online entertainment video services in China and internationally. The company’s product offerings include online video, online games, online literature, and more. Its services are offered through its main platform, as well as through a live broadcasting platform known as the iQIYI Show. As of 2024, iQIYI (NASDAQ:IQ) has a subscriber base of over 100 million and its online video platform has over 400 million monthly active users.
iQIYI (NASDAQ:IQ) is strategically expanding into international markets, with a specific focus on Southeast Asia and other Asian regions to drive future growth. In the recent quarter, the company reported strong revenue expansion. Membership revenue saw significant year-over-year and sequential increases, particularly with substantial growth, an 80% annual increase in markets such as Hong Kong and the UK. It highlights the company’s effective strategy in broadening its global presence.
The popularity of iQIYI ‘s (NASDAQ:IQ) original content among international audiences has been a major driver of this growth. Shows like Sword and Fairy have gained substantial viewership across various regions, ranking prominently in countries such as Thailand, Vietnam, and Indonesia. Similarly, the second season of Rampas Cintaku, an original Malaysian production, has significantly boosted traffic and membership revenues on the company’s Malaysian side. The success is evidence of iQIYI’s ability to utilize premium content and local partnerships to enhance global market reach and revenue growth.
Additionally, iQIYI (NASDAQ:IQ) has strengthened its position through strategic collaborations with telecommunications firms and tourism authorities in Hong Kong and Thailand. For example, the company’s drama series Lansdowne secured a prime slot on selected local TV stations in Thailand, which increased its brand visibility and viewer engagement. iQIYI’s (NASDAQ:IQ) management plans to maintain a steady pipeline of high-quality CPOP content to sustain and expand its presence in international markets.
Moreover, the company aims to accelerate the production of original content tailored specifically for local audiences, to deepen viewer engagement and loyalty. Management remains committed to promoting CPOP and local content through ongoing partnerships with Southeast Asian TV stations, which will reinforce its brand presence in key markets. Its approach will improve the company’s competitive edge and position it to capitalize on the growing demand for premium entertainment across Asia.
In the first quarter, 15 hedge funds held positions in iQIYI (NASDAQ:IQ) and their stakes amounted to $107.953 million. As of March 31, Maple Rock Capital is the most dominant shareholder in the company and has a position worth $43.65 million.
Ariel Global Fund made the following comment about IQIYI (NASDAQ:IQ) in its Q2 2023 investor letter:
“Lastly, we established a new position in IQIYI, Inc. (NASDAQ:IQ), a leading long form online video entertainment service in China. Despite facing recent obstacles, including competition from short-form content platforms, iQIYI boasts a devoted user base, robust partnerships with major content providers and an extensive collection of original and licensed content. Our confidence in this investment is further strengthened by iQIYI’s implementation of a proprietary industrialized production system. This technology leverages data-driven approaches to effectively manage content creation, allocate budgets, and monitor production progress, facilitating sustainable growth and informed decision-making.”
While we acknowledge the potential of iQIYI, Inc. (NASDAQ:IQ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
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