Emir BardakçıIn an honest exchange during the Xiaomi 15 Ultra live broadcast of 22nd February, Xiaomi Group president and partner Lu Weibing spoke candidly of the company’s excellent stock performance and the associated mounting pressure that it has been subject to. The executive and company president of the company’s mobile phone business and company brand general manager spoke of the company valuation that has posted a near-400% increase in the last few months.
Market Expectations Create New Challenges
Lu Weibing explained that although he had once thought that Xiaomi’s market capitalization had been severely undervalued, the four times jump in the company’s shares has put tremendous pressure on the management team. He made a crucial distinction regarding the dynamics of the market: the price of shares and the valuation of the market don’t just portray the company’s previous achievements but instead the investors’ anticipation of the company’s future and possibilities.
This sudden jump in Xiaomi’s capitalization reflects the tremendous confidence of investors and analysts alike, yet it also imposes a higher burden of responsibility on the management team. Lu showed anxiety regarding whether Xiaomi’s future business development will be able to keep such elevated expectations in line with the company, recognizing the heavy burden of responsibility that such investor confidence imposes.
Commitment to Future Growth
In the midst of the pressure, however, Lu Weibing remained resolute in Xiaomi’s determination to live up to such expectation. He assured investors and followers that the Xiaomi team will not rest until they vindicate the confidence that has been accorded the company by the market. The timing of the comments also comes at the Xiaomi 15 Ultra launch event, the company’s priciest device yet. The flagship device signifies Xiaomi’s further push into the premium space of the market that could be a vital driver of the growth curve investors are betting on.
Lu’s frankness about the company’s challenges and prospects marks a mature management approach amid Xiaomi’s transition as a leading technology firm in the world.
Source: ITHome
