Anyone out there remember a company called Iomega? They were a firm that made these hideous things called ZIP Drives, and for some reason, trading their stock was all the rage. It made sense at the time, since Iomega shares seem to do little but go up every day.
I was reminded of this a couple of months ago, when it seemed that everyone had latched on to a new sensation, which was iQIYI Inc (NASDAQ:IQ), the so-called Netflix (NASDAQ:NFLX) of China. I had never even really heard of this thing until I was having dinner with a friend who, let’s just say, isn’t in the financial information business, and she was excitedly telling me of all the money she was making in the stock. It was a bit of a "Joe Kennedy shoeshine boy moment" for me, since I think the stock peaked that very day.
I only mention this because on Friday I noticed IQ had broken an important support level. Of course, it doesn’t have much data to go on, but I’d say the glory days of this darling are over, at least for now.
