What happened

iQiyi (NASDAQ:IQ) shareholders lost ground to a booming market last month. The stock dropped 12% in April compared with a 5.2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.

The decline added to significant short-term losses for owners of the Chinese streaming video giant, with shares down 18% so far in 2021.

A young woman looking at a laptop screen in a darkened room

Image source: Getty Images.

So what

April's slump came as investors started worrying more about the fate of many Chinese stocks. Companies such as iQiyi face the potential for being delisted on U.S. exchanges. Many institutional investors have sold the stock in recent weeks, too, which pushed the share price lower. And, in iQiyi's case, Wall Street is still digesting the fact that growth just turned negative for the streaming video business.

Now what

The company's management team might change that negative narrative with its upcoming earnings report. That announcement, set for May 18, will show whether iQiyi's moves into new content offerings like original movies helped it return to subscriber growth in early 2021. Executives also say that they have a plan for boosting profitability, although investors haven't seen those initiatives pay off yet.

But until growth and earnings get on a better trajectory, this stock might struggle to break out of its latest slump.

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