
iQIYI: The Good And The Bad
My "Hold" rating for iQIYI is unchanged. There are both positive and negative takeaways from its recent disclosures. Fixed-cost leverage and good expense management supported a 4Q25 earnings beat. But operating losses are expected in 1Q26 due to fewer self-produced dramas and the new theme park's start-up costs. The company is diversifying its revenue via micro-dramas, IP licensing, and physical attractions. However, it faces substantial threats from ByteDance's short-form drama platform and AI video creator.

















