YOU On Demand Soars 15% Amid Comments From Chardan Global

YOU On Demand Holdings, Inc. (NASDAQ: YOD) soared on positive comments from Chardan Global after a $1 billion investment was announced by Xiomi in video content to support its smart TV ecosystem.

Analyst Jay Srivatsa noted that “YOD’s You Cinema service was launched in Xiomi set top boxes in May 2014 as part of its Over the Top (OTT) deal with Future TV.

“The success of its service was evident in that the YOU Cinema service quickly moved to the number one spot among all the end user paid services on the Xiaomi box.”

Srivatsa believed “that Xiaomi desire to invest and expand its online video content could imply YOD’s movie and TV content could experience improved distribution and acceptance amongst Xiomi’s customers.”

“We expect these hardware manufacturers to also follow Xiomi’s lead in making further investment in enhancing video content on their respective platforms. We believe such a move could favor YOD, which possesses a comprehensive library of Hollywood movies and Chinese domestic TV content,” according to Srivatsa.

The firm reiterated its Buy rating on YOD with 12 month price target of $10.00.

YOU On Demand traded at $2.84 in the premarket, up 15.92 percent.