To The Moon

Xiaomi delivered a stellar earnings report, with its Q4 net profit nearly doubling to 9 billion RMB, while revenue surged by 49%, surpassing the 100 billion RMB mark for the first time. This impressive performance highlights the company's strong business momentum, driven by robust smartphone sales, growing IoT ecosystem, and expansion into electric vehicles (EVs).

Despite these strong financials, Xiaomi's stock performance is a key concern for investors. XIAOMI-W (01810) closed at $54.700, trading near its 52-week high of $59.450, and far from its 52-week low of $14.520. While some may see this as a sign of strength, others, like me, view it as an indication that the stock may be overvalued at current levels.

XIAOMI-W (01810)

I personally use a Xiaomi phone, and I am very satisfied with its performance. It offers great value for money, with impressive features and smooth functionality. However, when it comes to investing, my approach is different. I am not interested in Xiaomi stock for two main reasons:

1. Overvaluation Concerns – The stock price is already near its 52-week high, which may limit further upside potential in the short term. Investors who buy now could be exposed to corrections if the market takes profits.

2. No Dividend Payouts – Xiaomi does not offer dividends, making it less attractive for income-focused investors like me. I prefer stocks that provide passive income through regular dividend distributions.

That said, Xiaomi's long-term prospects remain promising, especially with its aggressive push into AI, smart devices, and the EV market. If the company successfully capitalizes on these trends, it could unlock new growth avenues. However, for now, while I appreciate Xiaomi as a smartphone user, I am not convinced about owning its stock.