5. iQIYI, Inc. (NASDAQ:IQ)
Number of Hedge Fund Holders: 27
Similar to Netflix Inc., iQIYI, Inc. (NASDAQ:IQ) is a platform for online content portals (NASDAQ: NFLX). In comparison to Netflix’s global subscription base of 209 million, the firm has 500 million monthly active daily users (MAU).
At the conclusion of the second quarter of 2021, 27 of the 873 top funds monitored by Insider Monkey were long on iQIYI, Inc. (NASDAQ:IQ). This position is estimated to be worth $1.1 billion on the market.
For the second quarter of 2021, iQIYI, Inc. (NASDAQ:IQ) exceeded both the EPS expectation and the revenue estimate by $0.05 and $24.30 million, respectively. Instead of the experts’ predicted $1.23 billion, the firm forecasts its net sales to be between $1.18 billion and $1.25 billion for the third quarter of 2021, showing an increase of 6% to 13% YoY.
The firm shouldn’t be viewed as a Chinese pure-play because it has acquired over 106 million users thanks to exclusive rights to globally renowned Korean content. This is where iQIYI, Inc. (NASDAQ:IQ) comes into play, since the recent success of Squid Games on Netflix further demonstrates the potential of Korean content. In addition, the business unveiled “iBarca Membership” in collaboration with Barcelona Football Club. Iqiyi customers would get access to special Barca TV Mandarin material as well as other advantages.
4. Paysafe Limited (NYSE:PSFE)
Number of Hedge Fund Holders: 50
London-based Paysafe Limited (NYSE:PSFE) is a global supplier of specialist payment solutions. The company employs 3,400 individuals in more than a dozen sites across the world and does $100 billion worth of business annually. After a merger with SPAC sponsored by the Blackstone Group Inc (NYSE: BX) and CVC Capital Partners, the firm went public at the end of 2020. Paysafe was acquired by both of these companies in 2017 for $4 billion.
As of Q2 2021, 50 of the 873 hedge funds that Insider Monkey follows had positions in Paysafe Limited (NYSE:PSFE). Their total holding is valued at $1.12 billion, or 19.1% of the company’s market capitalisation.
Through its specialist products, Paysafe Limited (NYSE:PSFE) has the chance to benefit from the development potential in the US online gaming market. As more states legalize online gambling, the sector is predicted to expand by 50%. Most recently, Connecticut saw the introduction of online sports betting. New York’s plan to legalize sports betting online is currently in its final stages, while nearby New Jersey just made history by being the first state to record $1 billion in sports wagers in a single month. Additionally, the business offers digital wallets that might help it compete in the bitcoin market.
