Brief Equities Bottom-Up: IQiyi (IQ): In 4Q18, Baidu’s Growth Engine Lost Control Over Content Cost and more

In this briefing:

1. IQiyi (IQ): In 4Q18, Baidu’s Growth Engine Lost Control Over Content Cost

1. IQiyi (IQ): In 4Q18, Baidu’s Growth Engine Lost Control Over Content Cost

• We notice that the growth rate of cost of revenues exceeded the growth rate of membership revenues.
• We believe that the margins will continue to decline even if the advertising business recovers.
• IQ has the largest monthly active users in the video market, but it does not have an obvious advantage over Tencent Holdings (700 HK) .