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Friday, March 11, 2022

Didi -- The Stock Jim Cramer Highly Recommended Last Year -- March 11, 2022

Fascinating story. 

Apple has (?) a seat on the Didi board.

For the archives.

First, the wiki entry

Then, Jim Cramer's recommendation: get as many Didi shares as you can after the Chinese ride-hailing giant goes public -- Jim Cramer, June 28, 2021. 

Then, social media

And, finally, Didi today. Or direct to CNBC: Didi's 44% stock plunge leaves SoftBank and Uber with diminishing returns. Didi shares are now 87% below the IPO price last year. Two largest shareholders:

  • SoftBank
  • Uber

From the linked CNBC article:

The shares were already in freefall amid a crackdown by the Chinese government on domestic companies listed in the U.S. Didi said in December that it would delist from the New York Stock Exchange and instead list in Hong Kong. On Friday, Bloomberg reported that Didi hadn’t complied with data-security requirements necessary to proceed with a share sale in Hong Kong. 

I haven't watched CNBC in over four weeks, and each day, it seems, I'm missing it less. 

Softbank owns about 20% of Didi. The Japanese conglomerate’s stake is now worth around $1.8 billion, down from close to $14 billion at the time of the IPO. Uber’s roughly 12% stake has fallen from more than $8 billion in June to just over $1 billion today.

Uber was up slightly at the close today, and slightly lower after hours. 

2 comments:

  1. The curmudgeon in me says: "Quit screwing around with these nonsense companies! Invest in real companies with real assets and real earnings. Then watch to be sure that management isn't raping, pillaging and plundering its shareholders". If a company doesn't have a real product that improves their customers' lives, how can one expect it to succeed. Lesson learned from a life-time of investing. Best advice? Buy shares in a company as if one would gladly own the whole enterprise, if one had the wealth. Investing is a lot different than trading. Think Buffet and BSN....

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    Replies
    1. Agree, 1000%. I have no idea why folks would look at companies like Chinese Didi when there are so many better options here in the US. We're going to see much more of this -- companies with no products and no revenue -- as things continue to implode.

      Long term we will do just fine and something tells me those investors who stick to their investing plans will do just fine.

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