Why iQIYI Inc. (IQ) Surged On Wednesday

We recently published a list of These 10 Stocks Led Rally on Wednesday. In this article, we are going to take a look at where iQIYI Inc. (NASDAQ:IQ) stands against other stocks that led rally on Wednesday.

Ten companies led the charge on Wednesday, bucking a mostly pessimistic broader market, on the back of better outlook, positive earnings performance, and news of government support.

Wall Street’s main indices finished mix, with the Dow Jones and S&P 500 declining 0.50 percent and 0.27 percent, respectively. Nasdaq was the sole gainer, albeit inching up only 0.03 percent during the day.

In this article, we will explore the reasons behind the 10 firms’ strong performance. To come up with Wednesday’s top gainers, we considered only 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)

iQIYI Inc., a Chinese-based online entertainment platform, saw its share prices increase by 10.48 percent on Wednesday to end at $2.53 apiece as investors repositioned their portfolios ahead of the release of its fourth quarter and full-year earnings results next week.

Recently, IQ earned a number of bullish outlooks from analysts on the back of its strong viewership over the past quarters.

Last week alone, IQ said it saw a surge in viewership and online engagement during the Chinese New Year, saying classic IPs, including blockbuster films, served as a powerful foundation for the surge.

Meanwhile, it also saw evolving content preferences of users, already gradually transitioning to a mix of long-form videos and mini-dramas.

Last month, IQ upgraded its Diamond VIP membership enabling members to unlock Member Express Packages without needing additional membership points or purchases.

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 6th on our list of stocks that led rally on Wednesday. While we acknowledge the potential of IQ as an investment, our conviction lies in the belief that some 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 as promising as IQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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