10 Stocks Mirror Wall Street Downturn

7. iQIYI, Inc. (NASDAQ:IQ)

iQIYI, Inc. (NASDAQ:IQ) saw its share prices drop by 9.92 percent on Thursday to end at $2.18 apiece as investors unloaded positions following disappointing earnings performance last year while digesting announcements of fundraising activity.

In its latest earnings, IQ swung to a net loss of RMB189 million from a RMB466 million attributable net income in the fourth quarter of 2024, while net income for the full year dropped by 60 percent to RMB764 million from RMB1.9 billion in 2023.

Revenues for the full year also dropped by 8.3 percent to RMB29.22 billion from RMB31.87 billion, while revenues for the quarter declined by 14 percent to RMB6.6 billion from RMB7.7 billion.

A few days after its earnings release, IQ announced that it was looking to raise $300 million through the issuance of convertible bond offerings over the next five years.

Under the terms, the unsecured notes will offer a coupon rate ranging from 4.25 percent to 4.75 percent annually, with payments to be made quarterly.

IQ’s bond issuance is being managed by Bank of America, Morgan Stanley, and JPMorgan as joint bookrunners for the deal.

IQ said proceeds from the issuance would be used to repay or repurchase existing debt securities, while the balance would be for general corporate purposes.