Chinese e-commerce giant JD.com beat market estimates for quarterly revenue on Thursday, signaling resilient consumer spending on its platform, fueled by price cuts and government subsidies.
Despite revenue gains from the 618 festival, JD Q2 margins may face pressure from heavy spending and fierce rivalry.
Recently, Zacks.com users have been paying close attention to JD.com (JD). This makes it worthwhile to examine what the stock has in store.
The latest trading day saw JD.com, Inc. (JD) settling at $31.64, representing a +2.36% change from its previous close.
JD.com, the Chinese e-commerce giant controlled by billionaire Richard Liu, has proposed to acquire Ceconomy in a deal that values the German electronics retailer at €2.2 billion ($2.5 billion).
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
JD.com, Inc. (JD) concluded the recent trading session at $32.23, signifying a -2.98% move from its prior day's close.
JD.com (JD) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
JD.com, Inc. (JD) closed at $33.88 in the latest trading session, marking a +1.44% move from the prior day.
JD.com is undervalued with a P/E ratio of 8.33, below peers and U.S. counterparts, despite solid revenue growth and profitability. China's government is actively working to spur domestic consumption, which could drive significant upside for JD if successful. Trade negotiations between China and the U.S. appear promising, and a deal could provide a near-term catalyst for JD's stock price.
JD.com has transformed into a profit machine, with steadily expanding margins and robust free cash flow, despite persistent China-related risks. Shareholder returns are now compelling, with a 10%+ yield through dividends and aggressive buybacks, offering tangible value even if the stock remains undervalued. JD trades at a deep discount, especially when accounting for its massive net cash position, which provides a wide margin of safety.
JD.com boasts strong finances, solid earnings, and a low valuation, yet its stock price remains depressed due to China's challenging retail environment. Intense price competition and deflation in China are weighing on margins and consumer demand, despite government pledges to address these issues. Beijing is playing the long game, so any policy changes to support consumption and tackle involution may take time to impact JD's performance.