3 Reasons Xiaomi Is Skyrocketing Despite Declining Earnings
Shares of Xiaomi (OTC: XIACY) are skyrocketing this week on the heels of the company's second-quarter earnings report. At first glance, this may be somewhat surprising, as Xiaomi's adjusted earnings actually declined during the quarter. Though revenue increased 3.1% and gross margins expanded slightly, adjusted (non-IFRS) net income declined 7.2% as Xiaomi stepped up aggressive marketing and promotions for its new 5G phones.
Yet despite the anemic overall growth and an earnings decline, Xiaomi's stock shot up after the report. It's now up a whopping 38% for the month as of this writing. So what has investors so enthusiastic?
Source Fool.com
