Since then, JD shares have decreased by 22.8% and is now trading at $22.29. Evercore ISO (EVR 1.08%) analyst David Raso cut his price target to $424 from $456 and downgraded the stock to in-line from outperform. “We have a robust pipeline from across sectors and geographies,” Tuttle said at the Reuters Global Markets Forum ahead of the World Economic Forum’s annual meeting in Davos. “It’s just finding that time when investors have the appetite for these companies, and companies are ready to go.” A handful of China ETFs fell on Tuesday to hit fresh 52-week lows as shares of Baidu, Bilibili and JD.com declined more than 3% each.

  1. That change wasn’t too surprising, since Alibaba and Pinduoduo also stopped disclosing their exact user numbers several quarters ago.
  2. As you can see, JD’s fundamentals have improved throughout the 3Y period while its price has gone down, and its P/FCF ratio has dropped from 100+ to a mere 9.7.
  3. It’s as if the momentum is allowing investors to look past the supposed real risks that occupy Chinese companies.
  4. Advanced Micro Devices helped pull the sector into positive territory with a rally of more than 7%.

Additionally, one Wall Street analyst lowered its price target, reflecting ongoing negativity around the stock. JD.com has several growth opportunities to leverage in the dynamic e-commerce landscape. The continued growth of online shopping in China and globally presents a vast market for JD.com to capture.

Henry Jun Mao, who is now JD Logistics’ head of investor relations and was the previous director of budgeting and forecast at JD.com, became Dada’s CFO on Dec. 19, 2023. Meanwhile, Ian Su Shan, who is currently the CFO of JD.com, became Dada’s chairman on Dec. 19. We maintain JD.com’s fair value estimates at USD 43 per ADS and HKD 167 per share. JD.com is undervalued currently but we prefer PDD Holdings in the China e-commerce space, due to the latter’s stronger growth and market share win.

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This puts Peter Cowgill in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. While Nvidia is the clear-cut leader when it comes to advanced graphics processing units (GPUs) used for artificial intelligence applications and data centers, AMD has a distant second-place position in the category. On the other hand, the smaller GPU player is devoting resources to improving its position in the space and may be able to make inroads in the fast-growing industry segment. Uber has decided to shut down alcohol delivery service Drizly, which it bought three years ago for $1.1 billion, Axios reported on Monday. The CGPI remained flat in December compared with the same period a year earlier, compared with Reuters expectations of a 0.3% fall. “Domestic consumer confidence is soft because of the softer labor market and softer incomes,” Eric Robertsen, global head of research at Standard Chartered Bank, told CNBC’s Street Signs Asia.

The company aims to cater to the diverse needs of its customers by offering a vast selection of products from local and international brands. For the first quarter of its current fiscal year, TSMC’s midpoint guidance calls for sales of roughly $18.4 billion — up roughly 10% compared to last year’s sales. Investors are also looking ahead to December retail sales data out Wednesday, which could fuel recessionary fears and concerns about economic growth if U.S. consumer spending sees a cooldown. Boeing shares tumbled about 7.9% after Wells Fargo downgraded the company to equal weight from overweight, amid ongoing troubles with its 737 Max 9 model. Meanwhile, AMD shares jumped 8.3% following upbeat analyst commentary on semiconductor demand. The chipmaker, which is trying to catch Nvidia in the artificial intelligence race, rose to a new 52-week high, and is scheduled to report its quarterly results on Jan. 30.

JD.com stock rises as e-commerce giant tops earnings estimates, while Alcon shares slip

Additionally, China’s population fell for the second year in a row, showing that efforts to support population growth and new families have fallen flat. Sign-up to receive the latest news and ratings for JD.com and its competitors with MarketBeat’s FREE daily newsletter.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Alibaba’s news that it won’t spin off its cloud unit due to expanded U.S. export controls on chips is hurting shares. Chinese billionaire Richard Liu has acknowledged a litany of problems besieging his JD.com as the e-commerce company keeps ceding ground to a once-small rival, vowing to change and address the lack of… The People’s Bank of China offered commercial lenders a net 800 billion yuan ($112 billion) in one-year loans Friday—a record cash injection into the banking system through its one-year policy. Latest economic figures from Beijing were a disappointment and the outlook this year doesn’t look much better. We’d like to share more about how we work and what drives our day-to-day business.

Thinking about trading options or stock in Palantir Technologies, Amazon.com, Broadcom, Ford Motor, or JD.Com?

On one hand, I like the fact that JD has managed to strike a delicate balance between maintaining profitability and driving future growth with new investments. On the other hand, future unexpected regulatory events could still have a negative effect on JD.com’s financial performance and stock price. While JD.com’s consolidated subsidiary Dada Nexus, or Dada, overstated an estimated CNY 500 million in revenue and CNY 500 million in costs in the first three quarters of 2023, we think this has minimal earnings impact on JD.com. The overstatement represents 6.1% of Dada’s total revenue but only 0.06% of JD.com’s revenue in the same period. While this speaks to greater corporate governance concerns, we think the recent management changes at Dada and new management with affiliation to JD.com will help to strengthen corporate governance.

Why did the bulls abandon JD?

After every peak, the investors hailed these companies to triple in a year or two. Back then, I knew how it would ultimately end when the realities could no longer meet the extraordinary expectations. For long-term investors, JD can at least double in the next few years as the Chinese economy gets back on its feet, resuming better growth, and the extreme pessimism surrounding the equities dissipates. The company also issued its first annual dividend of $0.62 (2.42%) for the troubles of holding the stock. One of China’s key concerns regarding U.S.-listed stocks is that they might share data with the U.S. Going by this logic, JD.com is sitting on a data mine since it has more than 500 million annual active customers.

Financial Strength

As mentioned earlier, JD’s annual active customer accounts was only slightly over half a billion as of June 30, 2021. Notably, JD.com has already added 60 million new active customer accounts in the first half of this year, implying that it is on track to meet its full-year target. JD’s future user growth is likely to be driven by its further expansion into new product categories and lower-tier cities in China. In summary, JD.com would have been worth investing in as a business, if the company had limited exposure to regulatory & policy risks which is unfortunately not the case.

It is the largest online retailer in China and one of the largest in the world. The company sells a wide variety of products, including electronics, home appliances, apparel, groceries, and more. It also offers a variety of services, such as logistics, online travel booking, and financial services. It has a strong presence in China, with over 900 fulfillment centers and 140,000 delivery stations across the country.

But I decided to sum up all the facts and create realistic scenarios of what can happen. The probabilities are currently in buyers’ favor based on all the available information with logical and strategic reasoning, disregarding sentimental issues. You don’t even have to believe in the classic growth story of China but recognize an obvious dislocation in the market. I believe that once the macro headwinds improve, limefx the institutional money will return, resulting in multiple expansion. JD is a Strong Buy at these levels due to extreme pessimism that almost entirely ignores the financial realities and future of the company. Furthermore, I think the worst regulatory issues are also behind us for the foreseeable future since the CCP can’t afford to crack down on the country’s biggest employers and the ones driving the GDP.

China stocks have been hammered this past year as government regulators have issued a series of new rules aimed at banning unfair competition. The regulatory tightening started with a trickle, but intensified in terms of its duration, intensity and scope. Piyush Gupta, CEO of the Singapore-based banking group, believed the possibility of armed conflict was remote. Rather, Gupta said in a press conference addressing https://broker-review.org/ the acquisition that the return of Taiwan to Beijing’s control “will be in synchronous, it will be non-violent, and it will be influenced-based over a period of time.” We are past the peak pessimism and uncertainty like we have experienced in the two mentioned events. Thus, with JD trading at near the trough P/B ratios and far from the five-year average, it is hard to argue that JD is currently overvalued.

The U.S. dollar index rose nearly 1% after Federal Reserve Governor Christopher Waller said interest rates “should be lowered methodically and carefully” when the time is right. That marked a continuation of a recent selloff amid ongoing troubles with its 737 Max 9 planes after a door plug blew out during a flight earlier this month. Despite the challenges, the recent GDP growth number of 4.9% beat expectations, signaling that recovery is slowly happening. As you can see, JD’s fundamentals have improved throughout the 3Y period while its price has gone down, and its P/FCF ratio has dropped from 100+ to a mere 9.7.

However, it is important to interpret these financial metrics in conjunction with the stock’s performance and other market dynamics to understand JD.com’s overall health and attractiveness of JD.com as an investment. JD.com, Inc., also known as Jingdong and Joybuy, is a Chinese e-commerce company headquartered in Beijing. Founded on June 18, 1998, by Qiangdong Liu, JD.com started as an online magneto-optical store but quickly diversified its product offerings to include electronics, mobile phones, computers, and other consumer goods. Over the years, the company has become one of China’s largest B2C online retailers by transaction volume and revenue.