10 Oversold Penny Stocks To Invest In Now

4. iQIYI, Inc. (NASDAQ:IQ)

Year to Date Gain as of October 25: -47.29%

Forward Price to Earnings Ratio: 7.91

Number of Hedge Fund Holders: 17

iQIYI, Inc. (NASDAQ:IQ) is a Chinese communication services company that provides online entertainment video services. It offers online video, online games, online literature and other products. The penny stock has taken a significant hit, dropping 47.29% in the year to date.

Amid the significant selloff, iQIYI, Inc. (NASDAQ:IQ) remains one of the oversold penny stocks to invest in now as the company is increasingly bolstering its content library in terms of quantity and quality as it eyes long-term growth. With a subscriber base of over 100 million and an online video platform with over 400 million monthly active users, iQiyi is increasingly expanding into new markets to drive future growth. Its efforts are already bearing fruit as the company’s membership revenue saw an 80% annual increase in markets such as Hong Kong and the UK.

Backed by a massive customer base and millions of active users, iQIYI, Inc. (NASDAQ:IQ) is one company well-positioned to benefit from the burgeoning advertising market. While the company delivered a 5% drop in second-quarter revenues to $1 billion, its streaming service sector remained bright, raking in 1.5 billion Yuan through online advertising services.  iQIYI boasts of strong performance abroad, as evidenced by the annual and sequential growth in both total revenues and membership revenue.

In the second quarter, 17 hedge funds held positions in iQIYI, Inc. (NASDAQ:IQ), and their stakes amounted to $148.22 million. As of June 30, Farallon Capital is the most dominant shareholder in the company and has a position worth $162.08 million.