How do you evaluate iQIYI will go public in the United States next year, with a valuation of more t

iQIYI is the only **** in my country that has been authorized by Netflix, and they need more money to compete with the platforms operated by Alibaba and Tencent. More content needs to be purchased and produced to maintain a leading position in the field.

At a valuation of $10 billion, although iQiyi is far lower than Netflix, it will surpass LeTV.

iQIYI's development trend in recent years and cooperation with other manufacturers have shown their ambitions. As of December 2016, iQIYI Mobile** monthly active devices reached 100 million, with 100 million hours of monthly use, an increase compared with January 2016.

This is the same as the American Chris. Anderson's concept of the "long tail" is consistent. He called the popular market that concentrates people's main needs as the "head", and some needs are small, scattered, and personalized, and the non-popular markets formed by this part of the demand are the "tails".

The meaning of the long-tail effect is that "the sum of all the popular markets will form a market larger than the popular market", which is the long-tail theory.

iQIYI has officially followed the development of this road since its inception,Gradually become the mainstream market,When a small number is sincere, a very large number is equal to a large number,Many small markets are gathered together to become a big market。

People don't just care about the 20 percent that have the 80 percent anymore, because the 80 percent has the same market share as the 20 percent.

It used to be the leading C2C business in China with this theory. <>

Whether it is iQiyi or **, actresses are the main force of consumption. In the era of "she economy", women have more income and consumption opportunities, showing stronger consumption demand and stronger spending power. Whether it's shopping ** or chasing dramas, women are first-class masters.

Therefore, the cooperation between iQIYI and Netflix is undoubtedly a qualitative leap for iQIYI, just like you can see the shadow of KFC in or near the place where you open McDonald's, it seems that not only people like to join in the fun, but also enterprises. No matter how the company develops, integrity is always the magic weapon to win, I think this is the reason why iQIYI can go abroad and go public in the United States.

iQIYI was founded in January 2010 and is an independent ****. In 2013, it acquired PPS AV for 100 million US dollars. The integration of iQIYI and PPS video and audio has become one of the leaders of China's leading platforms. <>

According to reports, iQiyi's U.S. IPO is planned in the first half of 2018, with a valuation of more than $8 billion, which is much higher than iQiyi's valuation of $2.8 billion when it announced its privatization, and also higher than Youku Tudou's market value of $4.7 billion when it was delisted. At the time of the announcement of the listing in the United States, the stock price ** once again refreshed a record high.

In the past two years, domestic companies have gone public in the United States. According to reports, not only Internet companies such as iQiyi, but also China's financial technology companies began to report news of going public in the United States in the second half of 2017. There are two main reasons why everyone wants to go public in the United States, after checking the information:

1. The U.S. market is more flexible. The U.S. market has a long history and is the most mature. Its total market capitalization accounts for half of the world's total, and its quarterly turnover accounts for 60% of the world's.

Due to the large amount of capital pooled in the capital market of the United States, the financing opportunities and space for enterprises are much larger than those in other countries (regions). At the same time, the United States is the most market-oriented operation, and the autonomy and convenience of enterprises are also high. <>

2. The approval cycle of the domestic market is long. The approval of enterprises to go public in China is much stricter than that in the United States. From restructuring to final listing, it will take at least two or three years or even longer, and there is no clear maximum waiting time until now.

For the Internet industry, where there is the potential for earth-shaking changes every month, they can't afford to wait that long. <>

At present, iQIYI's planned initial public offering (IPO) plan is still in the early stages, and there is no clear plan yet. Let's look forward to bringing us better ** service after iQIYI goes public!

1. iQIYI is said to have increased its earnings in recent years, but there is still no stop loss, and the listing process of domestic companies is long, and most companies are still queuing, so going public in the United States is iQIYI's top choice.

2. In fact, going out and seeking overseas development is a good thing for Chinese-funded enterprises, and it is also conducive to the development of enterprises. Moreover, it is also conducive to the international development of enterprises and the standardized development of enterprises, and if they are listed in China, not to mention that for some Internet companies, the current level of profitability is not enough. In particular, the first industry is an enterprise that needs a lot of capital investment, so the abundance of funds is very important for an enterprise.

Going public in the United States can solve the follow-up funding problem for the enterprise and bring sufficient cash flow support for the development of the enterprise. For enterprises, this is not only a capital strategy, but also conducive to the long-term development of enterprises.

3. Over the years, iQIYI has gone through the baptism of the market, self-reform, content reform, etc., and has achieved better optimization in products and user experience, and I believe that iQIYI can usher in her faster development after listing.

First of all, it is obvious to foresee the huge amount of money that comes with financing. With the advent of the era of Internet content payment, **main** iQiyi, Youku and other companies have switched from paying to buy content to self-made content. From the initial competition for the top big IP to the competition for mid-market resources, cultivate their own content production team.

This requires a lot of money. Therefore, going abroad is the best choice.

<> secondly, the rapid expansion of capital and the possibility of rapid realization of shareholders' assets. The ultimate goal of investment is to realize assets. Although the shares owned at this stage have market value, they may have to withdraw from the market if they are not optimistic about the future development of the company, or believe that the future appreciation of the enterprise is small, or because of the need for the strategic transfer of personal assets.

And the best way to go public was chosen.

<> last, the most Robin Li's product, although iQiyi is in charge of Gong Lei, it relies on resources. If iQIYI wants to achieve more diversified development in the future, going public is the best choice. The content market is highly competitive, and Internet companies have become white-hot.

In my opinion, this news is not at all unexpected.

Carefully analyzed, iQIYI's development benefits from the following three reasons.

One is to have self-made**. In modern society, people are exposed to more and more information. Compared with the lack of information in the past, it does not mean that you can win with some products, but you must have some distinctive products, so in the future, a competitive trend is still content is king.

One of the things that iQIYI has done very well is that it has its own content, and there are many good self-made dramas. In this way, it will attract other **** members to come to him, and his growth space will be very good, and the profit margin will be greater.

The second is the cultivation of payment awareness. Although Chinese people were not aware of the copyright of these cultural products before, with the advent of the knowledge economy and the growth of the new generation, people's awareness of copyright has been significantly improved, and the awareness of payment is also increasing.

The third is the prevalence of ** content. Compared with traditional text and audio, ** is more attractive to people. ** Not only into the sound, picture, but also animation, the color contrast, the front and back contrast of the picture is difficult not to be noticed.

Atypical Scorpio woman, sometimes cute as a rabbit, sometimes meticulous, often do some embarrassing things, and like to do things to the extreme.

We can analyze iQIYI's valuation of $8 billion from three levels. They are the phenomenon layer, the technical law layer and the underlying law level.

First, the phenomenon level.

Because iQIYI currently has 600 million registered users, of which in July today, there was news on the Internet that iQIYI has more than 10 million paying users, and the conversion rate is about 2%.

You must know that the number of Chinese netizens is only 100 million, in other words, mainly you go online, and basically have registered iQiyi. In addition, the conversion rate of 2% is also very high, and in Internet companies, the proportion of converting from members to paid members is a few thousandths or a few thousandths of a thousand, and you can wake up laughing at night.

One sentence summary: iQiyi now has many users, and there are many true love fans who are willing to give money, which is completely worth the price.

Second, the level of technical laws.

In terms of content:iQIYI was officially launched in April 2010,It has a history of more than 7 years now,In terms of explosive content and professional talents,It has a very deep accumulation,Even if other companies have money,It is difficult to surpass iQIYI in a short period of time。

At the payment level: The rapid growth of paid members is inseparable from the development of mobile payment software, such as the current iQiyi member recharge, supporting WeChat, Alipay, wallet, UnionPay and even phone bills.

In terms of timing: In recent years, it has been the outlet of Internet content, and even in an anti-human field like learning, big intellectual IPs like Luo Zhenyu and Wu Xiaobo have emerged.

Third, the underlying law level.

User value first: User experience is life in iQIYI's company. Take the experience of watching movies as an example, iQiyi's interface design is still very smooth, which gives users a better experience when watching movies.

Keep pace with the times: For example, this year's popular "China Has Hip Hop", before the production, there was no officially popular hip-hop program on the market, and iQiyi invested more than 200 million yuan in this program.

Scale effect: iQIYI has many years of experience in production, and has formed a standard process in content production, and has corresponding quality control standards, which greatly shortens the time required for production.

The herd effect: the more people watch, the more people will see in the future. It's a virtuous cycle.

iQIYI has a market capitalization of 100 million US dollars.

1.iQiyi rose, reporting US dollars, with a market value of 100 million US dollars, a trading volume of 10,000 shares, and a turnover rate.

There are currently 20 institutions with an average price target of USD with a minimum price target of USD and a maximum price target of USD.

2.There are 6 institutions giving **+ overweight ratings to iQIYI, 14 institutions giving holding ratings, and 1 institution giving **+ sell ratings.

3.The latest quarterly financial report shows that the company's revenue is 100 million US dollars, net profit is 100 million US dollars, and earnings per share are US dollars.

Extended Information:1Although iQIYI has been on the market for the shortest time, it has risen the most. As of yesterday**, iQiyi has risen by as much as one of the fastest-growing companies in several well-known Chinese concept stocks.

2.On March 29 this year, iQIYI was spun off from its parent company, the Chinese search giant, and landed on the NASDAQ in the United States at an issue price of $18 per share. First day ****14% to USD.

Subsequently, the stock price began to be strong**, and it is now 145% away from the issue price. Judging from this growth rate, iQiyi is expected to continue to move forward and catch up with NetEase.

As of **, NetEase has a market capitalization of $100 million. Wall Street analysis pointed out that although iQiyi broke on the first day of listing, it has now risen at least 160% from its lowest point, and its stock price has doubled in less than three months after listing. In just a few weeks, iQIYI has jumped from small-cap stocks to ** shares.

3.Previously, the 13F position report of American investment institutions in the first quarter showed that VIKING global investors, Canadian pension funds, castle groups, etc. chose iQiyi to build positions; Tiger Global Management, Hillhouse Capital, Millennium Management, point72 and others have established positions in Bilibili. The United States "Investor Business**" wrote an analysis that iQiyi and other ** industry companies can be called the most popular Chinese concept stocks in the near future, and because they are still in the early stage of growth, it is recommended to choose long-term holdings.

From the perspective of technical trends, iQiyi and other stock prices are far away from the 10th**, which means that it may happen at any time, but this will bring investors a rare **good opportunity.

Following the "preview" of the financial report during the Spring Festival, iQIYI's IPO road has been attracting much attention. On February 28, iQIYI officially applied to be listed and traded on the Nasdaq ** market, which is "IQ".

The prospectus disclosed that iQiyi plans to raise $1.5 billion. It is expected that 50% will be used to expand and consolidate the content library, 10% to enhance technical capabilities, and 40% to be used as working capital. The main purpose of the funds raised in this listing is to strengthen brand recognition, attract and retain outstanding employees, provide them with equity incentives, and obtain more funds.

According to the prospectus, it currently holds 100 million shares of iQiyi, accounting for the total share capital, and is the largest shareholder of iQiyi. After listing, it will have Class B ordinary shares with voting rights in iQIYI Yuhaolu, and continue to maintain the status of iQIYI's controlling shareholder. In addition, in 2011, United Shunwei Capital invested in the shares held by iQiyi's Xiaomi; HH RSV-V Holdings Limited, a subsidiary of Hillhouse Capital, became the third largest shareholder.