On Twitter, Muddy Waters says it’s short iQIYI (NASDAQ:IQ), believing that the company ”fraudulently and materially overstates its users, revenues, acquisition consideration, and value of its ’barter’ content.”
Muddy helped Wolfpack Research prepare its own short report, which estimates that IQ inflated its 2019 revenue by 27-44% and its user numbers by 42-60%.
IQ shares are down 4.5% to $16. Baidu (NASDAQ:BIDU), which has a roughly 48% IQ stake, dips 0.2%.
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