Muddy Waters joins Wolfpack in claiming iQIYI is a 'fraud'

Carson Block's Muddy Waters Research announced a short position in iQIYI saying it believes the company is a "fraud." Muddy stated via Twitter. "We assisted @WolfpackReports with comprehensive research into IQ. MW believes that IQ fraudulently and materially overstates its users, revenues, acquisition consideration, and value of its 'barter' content...MW and @WolfpackReports researched $IQ for over one year, including extensive surveying in Tier 1 cities, and collecting IQ data from advertising agencies." Shares of iQIYI are down 10.5% to $15.00 following the short report from Wolfpack Research and the corresponding tweets from Muddy Waters.