Xiaomi stock forms shooting star ahead of earnings: what next?
AI Sentiment: 18/100 Bearish
This score is generated through AI-driven analysis of the article's content.
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Sell/avoid into earnings. The weekly “shooting star” plus a mini death cross signals trend breakdown, and fundamentals are still pressured by rising memory/chip costs that already cut revenue and PBT. Even strong EV deliveries haven’t stopped the stock from falling, so the market is discounting EV progress while punishing the smartphone margin squeeze.
Key Risk: Earnings show a clear margin rebound (or guidance) that proves memory/chip costs are passing through fast enough to stop profit deterioration.
Sell the group, not just Xiaomi. The article notes Xiaomi is moving with other Chinese EV names despite delivery strength, implying a sector-wide de-risking around margins, financing, and demand sensitivity. If Xiaomi breaks the H$21.4 support, it likely drags the whole EV complex lower via momentum and index/ETF flows.
Key Risk: A sector catalyst flips sentiment—e.g., strong earnings/guidance from a major EV peer that forces investors to re-rate the whole group upward.
- Xiaomi stock has retreated sharply in the past few days.
- The company has lost market share in the smartphone market.
- It recently formed a shooting star pattern on the weely chart.
Xiaomi stock has pulled back in the past few days, erasing some of the gains made in July. It dropped to H$26.40 in Hong Kong, down by 18% from its highest level in June. This sell-off continued even after the company announced strong vehicle deliveries numbers. It recently formed a shooting star candle on the weekly chart, pointing to more downside ahead of its earnings.
Xiaomi stock falls despite strong vehicle deliveries
Xiaomi, the top Chinese technology company, announced strong vehicle delivery numbers earlier this month. It delivered over 30,000 vehicles in in July, making it one of the biggest and fastest-growing EV companies in China.
It was the fourth consecutive month in which the company delivered over 30k vehicles a month. It delivered 185k vehicles in the first half of the year, up by 17.18% YoY.
The company hopes to boost these deliveries this year by launchig more vehicles. It recently launched the SkyNomad vehicle, a huge SUV that starts selling between $38,000 and $44,000. Recent data shows that the vehicle has already received over 100,000 reservations.
Despite this progress, Xiaomi stock has dropped, mirroring the performance of other Chinese EV stocks. Nio stock has plunged despite its strong revenue and delivery growth. Other Chinese EV stocks like XPeng and Li Auto have been in a strong downward trend as well.
Xiaomi is being affected by the rising memory prices
Meanwhile, the company’s smartphone business is facing substantial challenges as memory prices surge. A recent report by Omdia showed that the global smartphone market dropped in the second quarter, while Apple and Samsung jumped.
Xiaomi maintained the third share of the smartphone market with a 11% share. Its share was 15% a year earlier. In contrast, Samsung’s share rose to 22% from 20%, while Apple’s jumped from 16% to 20%.
The same metrics were visible in Xiaomi’s earnings report. These results showed that its revenue dropped to 99.1 billion RMB from 111.2 billion RMB a year year. Similarly, the profit before tax (PBT) plunged from 13.1 billion RMB to 5.7 billion RMB in the same period.
Xiaomi’s two segments dropped during the period. Its smartphone and AIoT revenue dropped to RMB 79.2 billion from 92.7 billion, while the smart EV, AI, and other initiatives fell to RMB 19.8 billion.
Unfortunately, the challenges that Xiaomi experienced in the first quarter still remain. Memory and chip prices continue soaring. Just recently, Qualcomm, a top supplier, announced that it would increase the prices of its chips. Similarly, companies like SK Hynix, Samsung Electronics, and Micron have all boosted their memory prices.
Xiaomi share price technical analysis as shooting star pattern
Xiaomi stock chart | Source: TradingView
The weekly chart shows that the Xiaomi share price has dropped sharply in the past few years. It has dropped from a high of H$61.55 in June 2025 to the current H$26.18.
The stock formed a shooting star pattern last week. This pattern is made up of a small body and an upper shadow.
Xiaomi has also formed a mini death cross pattern as the 50 and 100 Exponential Moving Averages (EMA) crossed each other. Therefore, there is a likelihood that the stock will drop further in the near term, potentially to the key support level of H$21.4, its lowest level in June. A drop below that level will point to more downside.
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