iQiyi Inc. (NASDAQ:IQ) shares experienced a significant 5.79% plunge in the 24-hour trading period leading up to the Thursday morning session, as investors reacted negatively to the company's disappointing earnings performance for the fiscal year 2024.

The Chinese video streaming platform reported a swing to a net loss of RMB189 million in the fourth quarter of 2024, compared to a net income of RMB466 million in the same period of 2023. For the full year, net income dropped by a substantial 60% to RMB764 million from RMB1.9 billion in the previous year.

Revenue figures were also lackluster, with a year-over-year decline of 8.3% to RMB29.22 billion for the full year, and a 14% drop in the fourth quarter to RMB6.6 billion. Despite the challenges, iQiyi's Chief Financial Officer Jun Wang expressed optimism, stating that the company's focus on discipline and efficiency led to sequential growth in operating profit for the fourth quarter, carrying momentum into the start of 2025.