iQiyi Shares Face Cautious Analyst Sentiment Amid Financial Headwinds

Wall Street's prevailing stance on iQiyi Inc. is one of caution, with the consensus rating for the Chinese streaming platform's stock currently pegged at "Hold." This position reflects the ongoing operational and financial pressures facing the company, including declining revenue and persistent losses.

The company's latest quarterly report, released in November, painted a challenging picture. iQiyi recorded an 8% year-over-year drop in revenue and posted a net loss of 248.9 million Renminbi. Management attributed the results to a comparatively weaker content slate and adjustments to certain business relationships, despite maintaining its leading position in the domestic drama market.

This backdrop informs the current analyst outlook. A recent survey covering eight research firms reveals a divided but cautious view: three recommend buying the shares, three advise holding, and two advocate selling. The average 12-month price target derived from these ratings is $2.57. iQiyi's stock is presently trading around $2.09 per share.

Fundamental Metrics Under Scrutiny

Market experts point to several key financial indicators to justify their guarded stance:
* A negative Price-to-Earnings (P/E) ratio of -34.83 highlights continued profitability challenges.
* A Current Ratio of 0.44 suggests potential liquidity constraints.
* Institutional investors own approximately 52.7% of the company's shares.

Should investors sell immediately? Or is it worth buying iQiyi?

Recent rating actions underscore the lack of unanimity. While UBS Group upgraded iQiyi to "Buy" in August with a $3.32 price target, Weiss Ratings reiterated a "Sell" recommendation in early December.

Competitive Landscape and Strategic Shifts

iQiyi operates in an intensely competitive domestic streaming sector while also navigating a difficult broader advertising environment. In response, the company is pursuing a dual strategic focus on artificial intelligence (AI) technology and international expansion to reignite its growth engines.

Looking Ahead: A Pivotal Quarter

The consolidated "Hold" consensus and the $2.57 average price target indicate a wait-and-see approach among investors and analysts alike. All eyes will be on the upcoming fourth-quarter 2025 results, which are expected to provide critical evidence of whether the company is making tangible progress in stabilizing revenue and charting a path back to profitability. The trajectory of its AI initiatives and overseas business development will be key metrics for evaluation in the coming months.