Investing.com - Hong Kong-listed smartphone maker Xiaomi Corp (HK:1810) saw its share prices falling 19% from its post-IPO peak in mid-July as it is set to announce earnings for the first time as a public company on Wednesday.
“We don’t think its worth a pure internet company because it’s not the same as Alibaba (NYSE:BABA) or Baidu or Amazon (NASDAQ:AMZN). They can only get a new subscriber by selling a smartphone,” said Mark Newman, an analyst at Sanford C. Bernstein, in an interview with Bloomberg on Tuesday.
Bloomberg further noted that Xiaomi is now valued at about $50 billion, a significant drop from the $100 billion in 2017. The company raised only $4.7 billion in its IPO last month, less than half of what it sought to raise, according to the article.