Why iQiyi Stock Dropped Nearly 10% This Morning

iQiyi (NASDAQ: IQ), a subsidiary of Baidu (NASDAQ: BIDU) known as " the Chinese Netflix," is a favorite target of U.S. short-sellers. On Monday night, iQiyi gave them a gift when its Q1 2020 earnings report showed the company losing precisely as much money as analysts had predicted it would ($0.56 per share) despite reporting better-than-expected sales of $1.1 billion.

iQiyi shares fell as much as 9.7% in early trading on Tuesday before clawing their way back to about a 4.4% loss as of 11:35 a.m. EDT.

Image source: Getty Images.