US shares of iQIYI Inc. IQ,
shares fell Thursday in the extended session after the Chinese online entertainment company said it was the focus of a probe for securities and exchange commission and forecast revenue below Wall Street estimates. U.S. revenue from iQIYI fell 14% after hours, following a 2.4% decline in the regular session to close at $ 21.68. The company said the SEC is investigating allegations by Wolfpack Research that the company issued fraudulent financial statements. iQIYI said it conducted an internal review of the allegations. In addition, iQIYI said it expects revenue in the third quarter to be $ 984.1 million, while analysts had forecast revenue of $ 1.08 billion. The company reported a second-quarter loss of $ 204.1 million, or 28 cents a share, while revenue rose 4% to $ 1 billion from the previous quarter. Analysts surveyed by FactSet had forecast a loss of 46 cents a share on revenue of $ 1.05 billion.
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