Can iQiyi Stock Keep Going After Last Week's 14% Pop?

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IQ (23) is now at 61 million premium subscribers, up from 50 million at the beginning of the year. This number is 50% of NFLX subscriber count, yet NFLX trades at almost 10 times the market cap. Either NFLX is trading at a significantly frothy level or we can expect run after run from IQ over the next five years, and I do expect the latter. 

I also love the theatre idea which is similar to one I once had and was going to name CouchFlix. We see this idea working for IQ and providing even more momentum for the stock. 

This is an amazingly, lucrative business segment as NFLX has illustrated. IQ is in the midst of significant reinvestment in it's business and I actually see the lack of profits as a positive. Many of the greatest companies reinvested for years without profits, such as TSLA and AMZN and as long termer, this kind of strategy makes me feel warm and comfortable.

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