iQiyi Inc. (NASDAQ: IQ) shares plummeted over 5% in pre-market trading on Thursday, following the company's mixed third-quarter earnings report. The Chinese streaming giant's revenue declined 10% year-over-year, missing expectations, while earnings narrowly beat estimates.

The key factors weighing on iQiyi's stock include:

• Revenue of $1 billion missed analyst estimates by $20 million, with declines across key segments like membership services (-13%) and online advertising (-20%).
• While non-GAAP earnings per ADS of $0.07 beat expectations by $0.02, the company provided a lackluster outlook, indicating continued pressure on subscriber growth and advertising spend amid China's economic slowdown.
• Analysts raised concerns over iQiyi's lower content investment, which impacted membership growth, and questioned the sustainability of its profitability amid rising competition.

iQiyi's management struck an optimistic tone, highlighting the company's market leadership position and opportunities in emerging areas like interactive entertainment and generative AI. However, investors remain skeptical about iQiyi's ability to drive meaningful revenue and profit growth in the near term, contributing to the stock's pre-market sell-off.