- At first sight, the massive shift from linear to CTV and the large Chinese market seem like a mega opportunity for CTV players like iQiyi.
- However, at present the company can’t even produce positive gross margins and is bleeding cash, despite solid subscriber and ARPU growth.
- And it turns out that much of the future operational leverage hoped for depends on government regulation controlling costs.
Source: We’ll Pass On iQiyi Shares, At Least For Now (NASDAQ:IQ) | Seeking Alpha