Zhipu stock down 40% since Goldman's bullish call, dubbed China's biggest bubble

teortaxesTex · x · 2026-08-19

Zhipu (z.ai) has fallen 40% since Goldman Sachs declared the bullish "Zhipu moment." A short thesis argues GLM 5.3 was underwhelming, its moat remains fragile, and even after the plunge it trades at 41x 2028 P/S — China's biggest bubble stock.

A counterpoint: despite a lackluster GLM 5.3, Zhipu is still at least a top-3 Chinese AGI company, so a $75B cap remains low, with ample compute, research, and distribution ahead. Meanwhile, DeepSeek's long-term dominance is underrated due to its V4 Pro line and recent price hike.

Original post →

More from Venture

Venture channel →