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.
Komentarz:
I told you to skip this IPO, didn't I?
I told you to skip this IPO, didn't I?