Why iQIYI Inc. (IQ) Surged on Friday

We recently compiled a list of the 10 Firms Defy Market Pessimism. In this article, we are going to take a look at where iQIYI Inc. (NASDAQ:IQ) stands against the other firms.

Ten companies finished firmer on Friday, bucking an overall market pessimism, over a series of catalysts sparking buying appetite.

Wall Street’s main indices all finished in the red territory, with the Dow Jones down by 0.32 percent, the S&P 500 dropped 0.29 percent, and the Nasdaq down 0.50 percent.

In this article, let’s take a look at which companies defied broader market pessimism and explore the reasons behind their growth.

Friday’s top advancers only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A professional gamer streaming an online game to a massive audience.

iQIYI Inc. (NASDAQ:IQ)

Chinese video streaming services iQIYI Inc. (NASDAQ:IQ) jumped by 11.5 percent to finish at $2.23 apiece as investors took heart from its efforts to upgrade its services to lure more members.

According to the company, it upgraded its Diamond VIP membership enabling members to unlock Member Express Packages without needing additional membership points or purchases.

iQIYI officially launched Member Express Packages in 2023 in China, allowing VIP members to have exclusive access to unlock final episodes, behind-the-scenes extras, and more of an airing series through membership points or purchases.

The service, first available through the hit series “Mysterious Lotus Casebook,” received an enthusiastic response upon release, with over two million VIP members redeeming through membership points on the day of its launch.

Meanwhile, 2024 saw Member Express Packages increasingly become the standard for drama lovers, with more than 10 million VIP members using the service when viewing popular shows.

Overall IQ ranks 4th on our list of the firms that defy market pessimism. While we acknowledge the potential of IQ as an investment, 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 IQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.