IQ 1Q25 Results: Margins Impacted by Investments in Micro Drama
What’s new: iQIYI's reported 1Q25 revs that were largely in-line with consensus and our expectations. Margins could continue to be impacted by incremental investments in micro drama. We lower our PT from US$3.50 to US$2.00 partly due to the lowered margin outlook. Our updated PT of US$2.00 implies 16.2x FY26E P/E. We maintain our BUY rating.Analysts:
Jin Yoon
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