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CNBC News – June 3rd: Xiaomi’s stock, recently trading at HK$53.2, is catching the eye of investors. The price has recouped much of its losses from the past two months, and is now approaching a previous high of HK$59.
From a valuation perspective, Xiaomi’s current price-to-earnings (P/E) ratio, calculated by dividing its market capitalization by net profit, sits at a robust 54. This figure undeniably positions the company as a growth stock, reflecting market optimism about its future trajectory.
This elevated valuation sparks a key question for investors: is it still wise to buy Xiaomi shares at this level?
In response, Lei Jun, Xiaomi’s CEO, offered a perspective aimed at shareholders with a long-term investment horizon.
“For those of us who have been with Xiaomi since 2018 – a seven-year journey that has included peaks and valleys – the narrative is clear: the company’s fundamental capabilities are steadily strengthening and its performance is consistently improving. This, I believe, is the core of our story.”
Lei Jun remains confident that Xiaomi will deliver even stronger results in the near future.
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