iQiyi Inc. (NASDAQ: IQ) experienced a significant plummet of 12.6% in its stock price during the Thursday morning trading session. The decline was driven by the company's lackluster financial performance and a convertible bond offering announcement.
For the fiscal year 2024, iQiyi reported a substantial 60% drop in net income to RMB764 million, down from RMB1.9 billion in the previous year. The fourth quarter saw a swing to a net loss of RMB189 million, compared to a net income of RMB466 million in the same period of 2023. Revenue figures were also disappointing, with a year-over-year decline of 8.3% to RMB29.22 billion for the full year, and a 14% drop in the fourth quarter to RMB6.6 billion.
Adding to the investor concerns, iQiyi announced the launch of a $300 million convertible bond offering due in 2030. This move could potentially dilute existing shareholders' equity and contribute to the stock's downward pressure.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.