IQ Should I Buy
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IQ is not a good buy right now for a beginner long-term investor with $50,000-$100,000 to deploy. The stock is trading weak in pre-market, the chart is still bearish, analysts are cautious, and the latest quarter showed only modest revenue growth with sharply weaker profitability. I would not buy it now.
Current pre-market price is 1.17, down 0.85%. The trend is bearish: SMA_200 > SMA_20 > SMA_5, which confirms a downtrend structure. MACD histogram is negative at -0.0123 and still below zero, while RSI_6 at 40.11 is neutral-to-weak rather than oversold. Price is sitting below the pivot at 1.257 and close to support at 1.104, with resistance at 1.41 and 1.504. The short-term stock trend model also implies weak follow-through, with only a 40% chance of a modest next-day move and very limited upside over the next week/month.
The company also reported over 100 million users across 190+ territories, which supports brand reach and international growth potential.
The latest analyst update was negative: Morgan Stanley lowered its price target to $1.50 from $2.10 and kept Equal Weight, citing a muted Q1 with declining revenue and a loss, and saying improvement may take around six months. Financials also show pressure on profitability: net income turned slightly negative, EPS fell to zero, and gross margin dropped sharply year over year. Hedge funds and insiders are neutral, with no notable buying support. No recent congress trading data is available.
In 2025/Q4, revenue increased 2.73% year over year to 6,794,198,000, which shows top-line growth, but profitability weakened materially. Net income dropped 96.93% year over year to -5,816,000, EPS fell 100% to 0, and gross margin declined to 20.87%, down 14.75% year over year. This is a mixed quarter: revenue is growing, but earnings quality and margins are deteriorating.
The analyst trend is cautious to negative. Morgan Stanley cut its target to $1.50 from $2.10 and maintained Equal Weight, pointing to a muted quarter, declining revenue outlook, and a loss. Wall Street’s pros view: long-term content and AI-related strategy could help, and the international user base is large. Wall Street’s cons view: near-term fundamentals are weak, profitability is poor, and analysts see several months before any meaningful improvement. Overall analyst sentiment is not supportive for a buy now.
