Why did iQIYI Raise Money?
On Friday, March 29th, Chinese video streaming platform iQIYI announced it had closed its convertible bond offering of $1.2 billion. It is a six-year deal, and one of the largest bond offerings ever for a U.S. listed Chinese stock. I’ll talk about the potential upside and downsides of a large debt deal, but first let’s talk about what convertible bonds are, as it is important to know the nuances when evaluating a deal like this. Convertible bonds are a special typed of fixed-
IQiyi Earnings: Sales Growing Fast, Costs even Faster
iQiyi, the Netflix/YouTube hybrid in China, reported its 4th quarter and full year 2018 earnings after the bell on Thursday. It is typically at this point in an earnings article when the author regurgitates whether the stock beat or missed analyst expectations. I don’t know and don’t care about what analysts were expecting iQiyi to do. Arbitrary benchmarks like estimates disproportionally skew investor opinions and make people focus on the wrong things. With that aside, here