5 Best Stocks to Invest In According to Chinese Billionaire Lei Zhang

3. iQIYI, Inc. (NASDAQ: IQ)

Zhang’s Stake Value: $602,143,000
Percentage of Lei Zhang’s 13F Portfolio: 6.19%
Number of Hedge Fund Holders: 27

iQIYI, Inc. (NASDAQ: IQ) and its subsidiaries offer online entertainment services under the name of iQIYI. The company was founded in 2009 and stands third on the list of 10 best stocks to invest in according to Chinese billionaire Lei Zhang. iQIYI, Inc. (NASDAQ: IQ) currently has a market capitalization of $6.87 billion. 

On August 12, iQIYI, Inc. (NASDAQ: IQ) announced earnings for the second quarter of 2021. It declared earnings per share of -$0.27, beating the estimates by $0.05. However, revenue over the period was $1.2 billion, up 3.0% YoY, but missing the predictions by $50 million. On August 13, KeyBanc analyst Hans Chung lowered the firm’s price target on iQIYI, Inc. (NASDAQ: IQ) to $19 from $26 and maintained an “Overweight” rating on the shares. The analyst said that while the limited regulatory environment influences the content release schedule and poses near-term hurdles, enhancing the quality and amount of original content may generate a steady improvement in sub-churn rates.

The hedge fund chaired by Lei Zhang holds 38.65 million shares in iQIYI, Inc. (NASDAQ: IQ), worth over $602 million.