Xiaomi has typically been the poster child for the narrative that extols and marvels on the rise of China’s younger smartphone manufacturers globally. Like Huawei, Oppo, and Vivo, Xiaomi sells tens of thousands of phones yearly, and it does so at highly aggressive costs—often so low that they are a source of novelty in and of themselves for curious westerners.
However, the firm’s stock tells a really different story: of a Xiaomi that has didn’t capitalize on its advantages and is now price less than a social media network is best known for memes and the ramblings of one Very Indignant President.
At the end of its most recent day of trading, Xiaomi’s stock was down to around $1.15 (USD) a share, only a hair above half of what it debuted on its first day on the market nearly a year ago. Because of this, Xiaomi’s whole market capitalization is around $28 billion. Twitter’s—nonetheless removed from its historic peaks—is over $32 billion. While you’d be completely right to level out that market capitalization is a considerably illusory measure of price, it is also one of the few that so summarily and tidily offers an estimate as to what the market thinks an organization is worth.
And at this level, the measure for Xiaomi appears pretty concrete: the stock’s worth has steadily and consistently declined over the past year with very little fluctuation. That means most investors do not see a bright future for a corporation many thoughts were poised to take over the smartphone-as-a-commodity market.