Many people ask me about my thoughts of Xiaomi IPO and what i think is:
I personally like/love Xiaomi products. But i will skip this IPO and continue specializing on the small tech IPOs.
What i think of IPO as investment:
- Overcrowded (mostly with people who don't participate in IPOs)
- low demand (read latest news, price range reduction).
- its from China (look at falling china indexes - bad IPO timing)
- risk of future in US-market (ZTE-risk, Apple copy-cat etc.)
- no profitability NOW (but really high revenue - is key for future)
Long-term - might be very good (due to really good products), but in that case i will wait for 1 year to see how the market reacts to this stock.
AS a result, please look at Snapchat Chart. Imho it will repeat for the Xiaomi too. First day/week hype - and falling into abyss.
I personally like/love Xiaomi products. But i will skip this IPO and continue specializing on the small tech IPOs.
What i think of IPO as investment:
- Overcrowded (mostly with people who don't participate in IPOs)
- low demand (read latest news, price range reduction).
- its from China (look at falling china indexes - bad IPO timing)
- risk of future in US-market (ZTE-risk, Apple copy-cat etc.)
- no profitability NOW (but really high revenue - is key for future)
Long-term - might be very good (due to really good products), but in that case i will wait for 1 year to see how the market reacts to this stock.
AS a result, please look at Snapchat Chart. Imho it will repeat for the Xiaomi too. First day/week hype - and falling into abyss.
Note
Time for some pictures:I told you to skip this IPO, didn't I?
Note
I told you to skip this IPO, didn't I?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.