/biz/ - Business & Finance

>>10068353
When you get down to it, why would a stock like IQ drop right now. With high prospects for the future and business deals being made weekly you would think it would be impossible to drop this hard. Could it be a correction? I would say yes, but after dropping ten dollars with no sign of dropping that can't be it. I would suggest it is a result from trade war threats, but not from the fear it causes. IQ is valued on US stock exchanges by the dollar. China, in its effort to combat Trumps tariffs have consciously devalued the Yuan, its native currency. The lower stock price is based on a combination of a needed correction to raising too quickly, a little bit of unwarranted fear from tariffs, currency devaluation, and the anticipation of the Yuan tanking even further.

Functionally speaking all of this factors are connected but could be resolved independently. The correction happened early and its catalyst was the Donald, but in the coming months as long as the company performs as expected it will rise naturally. Trade disputes between the US and China will continue to impact it, but for how long we cannot know. Even in the event that we "resolve" the trade war, who is to say China won't continue to devalue the Yuan as part of their economic strategy?

IQ can overcome any one of these problems if isolated, but it only really takes two to hold it down. If thats the case, the only question is when will it not be?