Xiaomi (XIACY) has positioned itself as a formidable player in both the smartphone and electric vehicle markets, creating a unique dual-growth opportunity rarely seen among tech giants. Since Global Technology analyst Felix Wang added XIACY to the long side of his Position Monitor in April 2024, the stock has surged by 235%.
Fundamentals: A Rapidly GROWING Tech Powerhouse
Xiaomi's Q4 2024 earnings report showcased impressive growth across multiple segments:
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Revenue growth of 49%, the highest since Q2 2021
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Global Monthly Active Users (MAU) beat expectations by 12%, reaching 702 million
- Smartphone revenues grew by 16% year-over-year in Q4 2024, compared to Apple's iPhone 1% YoY revenue decrease during the same period
The electric vehicle segment is also gaining traction, with Xiaomi raising its 2025 delivery target to 350,000 units, up from an earlier figure of 300,000. This demonstrates the company's confidence in its ability to execute on growth plans.
In Wang's view, these factors make Xiaomi an attractive long-term investment opportunity despite a high valuation.
Quantitative Signal: Neutral
Hedgeye CEO Keith McCullough's Risk Range Signals use price, volume, and volatility to forecast likely trading ranges for stocks and ETFs. Keith's signal for XIACY is currently neutral, giving data-driven investors reason to be cautious in the immediate term.
Macro TAILWINDS: Aligned with China's Growth Prospects
Xiaomi's growth aligns with Hedgeye's bullish call on China. The confluence of government stimulus, favorable export conditions, and a bullish signal support a Long China position. The global economy's growth-accelerating environment could be a boon to Chinese companies like Xiaomi in the near term.
be prepared to capitalize on the next big price move
Xiaomi (XIACY) presents a unique investment opportunity with its strong presence in both the smartphone and EV markets. The company has demonstrated impressive growth, with its stock up 235% since Wang's Long call in April 2024.
When is the right time to buy XIACY? Subscribe to Real-Time Alerts or Investing Ideas and you'll be among the first to know when Keith McCullough's signal turns bullish.
