Xiaomi stock price has surged to a record high of H$61.05, making it one of the best-performing companies in the Hang Seng Index this year. It has jumped by over 615% from its lowest point in 2022.
This performance has diverged from the performance of Apple, its biggest rival whose stock has plunged by over 22% from the year-to-date high. Apple ranks as one of the worst-performing companies in the Nasdaq 100 and Dow Jones Indices this year.
Xiaomi is beating Apple and Tesla
The Xiaomi stock price has jumped to a record high this week as the company seeks to dethrone Tesla and Apple in their key markets.
Data shows that Apple’s market share in the smartphone industry dropped to 19% in the first quarter of the year. Xiaomi’s share rose slightly to 14%, while Samsung’s jumped to 19%.
Meanwhile, the company has become one of the fastest-growing players in the electric vehicle industries, threatening Tesla’s dominance. It unveiled YU7, Sports Utility Vehicle (SUV) this week, which has become an instant hit.
YU7 accelerates from 0 to 100 km/h in 3.23 seconds and has a maximum horsepower of 690ps. It has a top speed of 253 km/h and has an 835 km range on a single charge.
Data shows that the vehicle has attracted 289,000 orders in the last few days, and is posing a major threat to Tesla’s Model Y. YU7 costs about 4% cheaper than Model Y, meaning that Tesla may be forced to slash prices.
Read more: Here’s why the Xiaomi stock price is beating Apple
The new vehicle comes as Xiaomi’s sedan has become highly successful, selling thousands of vehicles and dethroning some other popular companies in market share.
Xiaomi recently raised $5.5 billion to accelerate the development of its EV business.
On the other hand, Apple has struggled to find the next big thing. Its Vision Pro product has not been successful as only a few people use it. Its AI solutions have also not been successful, which explains why it is considering acquiring Perplexity AI.
The most recent results showed that Apple’s revenue rose to $95 billion in the first quarter from $90.7 billion in the same period last year. Analysts anticipate that its Q2 revenue will rise by 3.3% to $88 billion, while the annual figure will get to $407 billion.
Xiaomi’s growth is accelerating
The Xiaomi stock price has soared because of its strong financial results. These numbers showed that its revenue jumped by 47% in Q1 to over RMB 111 billion, while its profit soared by 64% to RMB 10.6 billion.
Its smartphone and IOT business generated over RMB 92.7 billion in revenues, up by 22% YoY. Similarly, the smart EV, AI, and other initiatives jumped by 11% to RMB 18.6 billion.
Most importantly, Xiaomi is continuing to reduce its losses in the new businesses, and the management expects to break even soon.
Xiaomi stock price analysis
The weekly chart shows that the Xiaomi share price bottomed at $8.40 in October 2022 and then surged to a record high of $61. It recently moved above the important resistance level at $35.75.
This was an important level since it was the higher side of the cup-and-handle pattern. It then retested that level, forming a break-and-retest, a continuation sign. Therefore, the stock will likely continue rising as bulls target the next key resistance level at H$70.
The post Xiaomi stock price hits record high as Apple stumbles appeared first on Invezz
