China companies in the Dow and Nasdaq

[T-roy]

I hold shares of both BABA (the China equivalent to Amazon) and NIO (The tesla equivalent). Both companies seem to be making more revenue and more ATI however their stock prices are nothing compared to their American equivalent. Is there some regulation or tax implications that I am missing that makes these stocks not as worth as I think they should be?

[John.S.Mill]

I don’t think stock prices reflect revenue.

Cue GME

[John.S.Mill]

Also, I have both of them as well we can retire together

[John.S.Mill]

also, if it makes you feel any better

BABA’s buy rating is 96% on Robinhood, from 35 analysts.

NIO is like 60% I think.

[dr_t_non-fan]

Stock prices should reflect the market’s aggregate estimation of PV of future profits. (Ignoring AMC and GameStop, of course.)

In China, there is no guarantee of that, regardless of current success.

[R_Daneel_Olivaw]

@T-roy

I hold shares of both BABA (the China equivalent to Amazon) and NIO (The tesla equivalent). Both companies seem to be making more revenue and more ATI however their stock prices are nothing compared to their American equivalent. Is there some regulation or tax implications that I am missing that makes these stocks not as worth as I think they should be?

BABA will probably do well just because of the huge captive customer base. NIO will depend on how much of Tesla’s IP research they can steal before even the CCP can’t protect them outside of China. Of course Tesla is itself massively overvalued as a stock. So there is that part too.