Xiaomi exceeded all expectations in the third quarter – but the euphoria failed to materialize. Why investors are sending the stock into the red.
• Xiaomi presented figures that beat all expectations
• Investors still send the stock deep into the red
• Profit-taking and the “expectations trap” are a burden
Xiaomi is deep in the red after quarterly figures
The Xiaomi share is showing a negative price reaction after presenting strong quarterly figures yesterday. Immediately after publication on Tuesday, the paper was unable to respond due to the close of trading in Asia. However, on Wednesday, the stock posted a loss of 4.81 percent to HKD 38.82 despite impressive sales growth of over 30 percent and a booming electric car business on the Hong Kong stock exchange.
Expectations beaten in Q3
Xiaomi significantly increased its results in the third quarter of 2025 and exceeded expectations. Earnings per share increased from RMB 0.22 (HKD 0.24) to RMB 0.47 (HKD 0.51), well above analyst estimates of RMB 0.36 (HKD 0.39).
Sales also developed positively: Revenues rose by around 22 percent to 113.12 billion RMB (123.90 billion HKD), after 92.51 billion RMB (101.32 billion HKD) were achieved in the same quarter of the previous year. Analysts had previously expected only RMB 105.84 billion (HKD 115.92 billion).
Profit-taking weighs on the price
Analysts and market observers attribute the losses to the fact that a lot of positive news about business development had already been priced into the price and many investors apparently tended to take profits after the massive rally in 2025.
In addition, the so-called “expectation trap” is expected to play a central role here after the increase of around 12 percent over the course of the year. Despite recent drops, the share price remains well above the annual low of HKD 26.80. Analysts continue to rate the share generally positively, but see the short-term risk primarily on the valuation side and in possible further profit-taking.
Editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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