How can you buy Xiaomi shares?
Xiaomi may not be very well known in the United Kingdom. Nevertheless, Xiaomi is a major player worldwide, selling most smartphones after Apple, Samsung, Huawei and Oppo. The company has a particularly strong base in China. Recently, however, the company has also managed to conquer other countries with their phones. But how can you actually invest in Xiaomi and is it wise to buy Xiaomi stocks?
How can you invest in Xiaomi?
If you want to invest in the phone company Xiaomi, you need an account with a broker. A broker makes it possible to buy and sell Xiaomi shares. But what are the best brokers to trade in this company yourself?
Do you have confidence in the future of this well-known telephone company? Then it might be interesting to buy Xiaomi stocks for the long term. You can save significantly on transaction costs by buying stocks from a broker who does not charge commissions. A good example of this is eToro, use the button below to directly open an account with this broker:Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
Active trading with Plus500
Do you want to actively speculate on the price development of Xiaomi stocks? Then you can opt for the broker Plus500. With Plus500 you can actively speculate on both price rises & falls using CFDs. This method of trading is particularly suitable for the short term. Use the button below to instantly open a free demo on Plus500:72% of retail CFD accounts lose money.
What does Xiaomi do?
The company was founded in 2010 and is therefore fairly new. In 2011, they launched the M1 which was their first phone. After this phone proved to be a success, Xiaomi expanded its activities by developing more smartphones. Nowadays, the company also cooperates with many other companies and produces all kinds of different products: action cameras and smart lights are some examples.
A handy video in which you learn more about the company Xiaomi
The future of Xiaomi
When the company was just founded, most of the revenue came from smartphone sales. This seems to be changing: in recent years the share of smartphone sales decreases and other lifestyle products obtain a more important position within the company. This is a good opportunity for the company as they spread their risks across multiple product categories. If Xiaomi manages to build a stronger position in other product groups, it can be attractive to buy Xiaomi shares.
In the beginning, the company mainly focused on the Chinese market. The company starts to explore other regions as well. A large proportion of the income comes from China, but other countries are also playing an increasingly important role. For example, Xiaomi has now laid a good foundation for selling their products in India.
It seems that Xiaomi has been successful in expanding their position. They are doing this both by focusing on other product categories and by conquering new markets. There is clearly an upward trend in the company’s operating results. If you, as an investor, have confidence in this upward trend, it can be attractive to buy Xiaomi stocks.
How did the IPO go?
The IPO of the company was rather disappointing. Xiaomi originally hoped to raise 10 billion by issuing stocks on the Hong Kong stock exchange. Unfortunately, this turned out differently: the total proceeds amounted to around 6 billion, bringing the value of the company at launch to around USD 50 billion.
The money from the IPO was used to further expand the company. Much of the money raised goes to the research and development of new electronic products. Another large part of the money is used to develop Internet of Things lifestyle products.
Some investment tips
- Spread your risks: do not invest all your money in Xiaomi shares.
- Use a stop loss to cover potential losses.
- Track the developments of the smartphone market closely.