To The Moon

🌟🌟🌟ECommerce stocks have been rising recently on the back of a Bullish market sentiment of the Feds cutting interest rates and inflation slowing down.

$JD.com(JD)$  led the markets since last  week after it reported Q423 revenue above analysts' expectations and announced that it would increase the size of its share repurchase program. In  the past 5 days, JD has jumped 13% but it is still down 31% in 2023.

Revenue in Q423 rose 3.6% to USD 43.1 billion versus expectations of USD 42.2 billion.   Net revenues for the full year of 2023 were USD 152.8 billion, an increase of 3.7% from 2022.   JD reported net income attributable to shareholders of 3.4 billion yuan, up 13% from 3 billion yuan in the previous year. 

CEO Sandy Xu Ran said that JD would establish an international presence with a focus on supply chain.  JD said last month it was considering acquiring UK electronics retailer Currys which shows JD's efforts to expand its overseas presence beyond China.

Some analysts believe that JD's popularity among cost conscious buyers has grown over the quarter.

JD said it will repurchase up to USD 3 billion worth of its shares over the next 3 years through to March 2027. 

JD has received a Buy rating from Tipranks with a Target price of USD 37.45, an upside potential of 38%.

$Pinduoduo Inc.(PDD)$  is one of the Fastest Growing  ECommerce stocks in recent times. It has even briefly overtaken Alibaba in market capitalisation in January 2024 with USD 196 billion versus Alibaba USD 190 billion.  PDD's share price is up 6% in the past 5 days but it is down 15% year todate.  In 2023, PDD is up 35%.

PDD is synonymous with value for money.  Its overseas subsidiary Temu has grown very quickly since September 2022 when the Temu Platform first went live in the US. Temu is now in 23 countries including Japan, South East Asia, Australia and Europe.

PDD is due to report its Q423 earnings on March 20.  Analysts are expecting PDD to post earnings of USD 1.62 per share for the current quarter representing a year over year change of +33.9%.  For the current fiscal year, the consensus earnings estimate of USD 5.63 points to a change of +41.5% from the previous year.

PDD has Buy rating from Tipranks of USD 181.44, an upside potential of 47%.

When it comes to ECommerce, $Alibaba(BABA)$  is a pioneer since it started in 1999.  Alibaba is now a global conglomerate operating through 6 segments - China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment.  It also operates Taobao, a digital retail platform, TMall, a 3rd party online and mobile commerce platform.

The latest news on Alibaba is that it will invest USD 1.1 billion over the next 3 years to create a logistics network in South Korea, aiming to take on local ECommerce giant Coupang by leveraging low prices and speedy deliveries. 

Alibaba is down 3.9% today but is just up 0.7% in the past 5 days. In 2023, Alibaba 's share price is down almost 10%.

Wall Street Analysts are bullish on Alibaba with a Buy rating, Target price of USD 101.55.an upside potential of 38%.

It is interesting to note that Michael Burry of the Big Short Fame is Bullish on Alibaba and JD.com.  According to his 13F filing, he increased his Alibaba and JD.com holdings.  Alibaba represented 6% of his portfolio in Q423.

One of the key factors drawing attention to Alibaba and JD.com is the stocks' attractive valuation.  There is huge potential in Alibaba especially if it IPOs any of the 6 business segments which it splits in March 2023 in the future.

The Global ECommerce market was valued at USD 18.98 Trillion in 2022.  Its market size is projected to reach USD 47.73 Trillion by 2030 growing at a compound annual growth rate of 12.2 % from 2022 to 2030.

Alibaba, JD.com and Pinduoduo are market leaders in ECommerce especially in China.  China's ECommerce industry is the largest in the world, with some estimates placing it at 3 times the size of the US and responsible for around 50% of all spending on retail apps.  That is why I believe that these 3 Chinese ECommerce stocks have huge potential to grow exponentially well into the future.   So it is time to go bargain hunting! 

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