Signs of improvement for Didi
Didi has been on a rocky path ever since its IPO days. With close to $14 range at IPO, it has dropped down to $3. The China government has been very strict on its company listing overseas, which restricts growth to the company and prevent data from leaking out.
Didi has to face the heavy punishment for at least two years.It has started the listing at US stock exchange, which after closer to 1 year, it has delisted and move to OTC exchange. In 2022, Didi had to pay $8 billion yuan fine.
Finally after two years of cleaning up the process the company, Didi finally has plans to move to HK IPO. The plan could mean a long-awaited payoff for investors and employees. By listing it on the HK exchange, it would encourage more investors to start buying into Didi, as it is deem less risky compared to OTC exchange.
With the go ahead for a listing from the Chinese administration, it demonstrate support for private business after years of crackdown. This would significantly draw in more investor attention.
As of January 2023, Didi's primary applications were once again available in the largest mobile stores in the nation, enabling the ride-hailing behemoth to restart expansion following over a year of regulatory uncertainty.
What will happen if didi get listed in HK?
The stock will goes from being traded through the OTC market to being traded on the exchange.
$DiDi Global Inc.(DIDIY)$ $FTSE China Bull 3X Shares(YINN)$ $ProShares Ultra FTSE China 50(XPP)$
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there was an abundance of DiDi news, I strongly feel that something truly significant is on the horizon this month. Good luck to everyone.
With growth improving and profitability on the rise, the EV multiplier will push higher, maybe towards 4 or 5 and we will be looking IMHO at a stock price between $20 and $30.
To make this investment trap worthwhile, I'm going to hold this until DIDI stock price reaches high $20s before I decide to sell or hold for longer and sell at $40+.
From the technicals (which we know could mean nothing for DIDI), DIDI is setting up to go higher.
I'm assuming that we are going to get the Q3 results in 2-3 weeks. If the growth is as explosive as in Q2, this baby is going to shoot up or will it? We will see - In any case, patiently waiting to sell at a worthwhile price....