iQIYI, Inc. [NASDAQ: IQ]: The trade war between the U.S and China may have slowed down the outlook in most sectors. However, one Chinese company is braving it all and is eyeing to grow its international reach. That company is none other than IQ. This Chinese version of Netflix has been on an exponential growth path in the Chinese market. It’s subscriber numbers shot up by 58% in Q1 to hit 98.6 million. That number has since grown to 100 million. What’s even more interesting is that, 98% of those customers are paid subscribers, which means they are adding to the company’s bottom-line. According to the CEO, this growth is driven by the company’s approach of targeting a more diversified user-base. Besides, serving the urban tech-savvy youth, the company has expanded its product offering to include older, rural people, a factor that has helped it surpass the 100 million user mark.
With this huge success in China, the company is now looking to scale its operations internationally. The strategy is to focus on Chinese speaking people, mostly expatriates all across the world. As per IQ data, there are about 60 million Chinese expats all across the world. This validates its president for overseas business assertions that, there has been a growing interest for Chinese language programming from outside China including in North America. Essentially, this means that IQ has a huge opportunity for expansion into the global market.
Investors seem to be taking note of the company’s huge potential both domestically and in the international market. For the past one month, IQ has been on a bullish trajectory. That’s in spite of all the uncertainties created by the U.S-China trade war. More short-term, IQ was a big gainer in Thursday trading. It shot up 10.18% and this momentum is likely to continue in the day, since it is already showing bullish sentiment in pre-market trading. At the time of writing, IQ is up by 1.25% to hit $20.28. If it opens the day above yesterday’s high of $20.34, it would be a signal that bulls are still in control.