Xiaomi’s Stock Surge Is a Big Turnaround After Post-IPO Struggles
- Investors upbeat as profit soars, Huawei faces restrictions
- Xiaomi positioned to gain market share in China, elsewhere
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Everything now appears to be going right for Xiaomi Corp., the Chinese smartphone maker whose stock failed to gain traction following its 2018 initial public offering.
Shares rose 5.4% Friday, putting this month’s surge at what would be a record 52%. Xiaomi is at all-time highs while larger rival Huawei Technologies Co. deals with U.S. restrictions intended to crimp adoption of the company’s 5G wireless technology. This week’s second-quarter report showed Xiaomi’s premium phones are making inroads in China, helping profit more than double. And an electric vehicle maker that Xiaomi invested in soared 41% in its U.S. debut on Thursday.