And you thought Apple’s shares have done well.
The stock of a Chinese technology company has risen just over 4,200% since it went public just 56 days ago. The amazing run, Bloomberg notes, is equivalent to the past 11 years of gains in Apple’s shares. It also gives the company, Beijing Baofeng Technology Co., an almost unbelievable valuation of 715 times earnings. That’s 46 times Apple’s P/E of 15.
Earnings at Beijing Baofeng, which develops online entertainment tools such as video download converters and movie players, are projected to drop 30% in the next year. But the company’s stock run probably has less to do with Beijing Baofeng itself than with the general euphoria for Chinese Internet stocks among local investors. Beijing Baofeng is one of a growing number of technology companies that are choosing to list their shares on China’s own stock exchange rather than in Hong Kong or in the U.S. Alibaba Group’s U.S.-listed shares have fallen to a recent $88 from a high of $120 back in November.
Janus Capital’s Bill Gross, a legendary bond investor, recently said that the technology-heavy Shenzhen market, where Beijing Baofeng is listed, would be a great trade for short-sellers, who bet that shares will go down.
- For Both Donald Trump and Alvin Bragg, the Central Park Jogger Case Was a Turning Point
- If Donald Trump Is Indicted, Here's What Would Happen Next in the Process
- Alison Roman Won't Sugarcoat It
- Why Not All Observant Muslims Fast During Ramadan
- All of the Other Major Investigations Into Donald Trump
- Who Should Be on the 2023 TIME100? Vote Now
- The Case for Betting on Succession's Tom Wambsgans
- Postmaster General Louis DeJoy's Surprising Second Act
- Column: Ozempic Exposed the Cracks in the Body Positivity Movement