To The Moon

🌟🌟🌟Alibaba, Pinduoduo and JD.com are 3 of the biggest Chinese ECommerce conglomerates.  Which is a better buy? Recently the 618 Festival has just concluded and is  a good indicator of Chinese household consumption appetite. The 618 Festival is named after the June 18 founding date of $JD.com(JD)$  but embraced by all platforms as China's 2nd largest annual sales event after Singles Day in November.  

$Alibaba(BABA)$  reported that sectors such as home appliances were outperforming on its platforms, led by brands such as Haier and Xiaomi.

Alibaba also reported that international brands including Nike, L'Oreal, Lancome and Adidas surpassed 1 billion RMB (USD 137.82 million) of sales on TMall during the period.

$Apple(AAPL)$  offered discounts of up to RMB 2300 (USD 318) on select iPhone models via its TMall flagship store in a bid to keep pace with domestic competitor Huawei.

Within the first hours of sale, Alibaba said that Apple had sold more than RMB 200 million  of merchandise. 

JD.com said that its turnover and order volumes reached a new high over the festival period.  However it did not disclose the exact growth rate of its orders or sales during the festival. 

$PDD Holdings Inc(PDD)$  did not disclose its 618 sales.

However industry experts said that this year 's 618 Festival failed to stir up a great deal of excitement among shoppers even as major platforms extended offers to the week long sales festival to woo belt tightening consumers.

Nonetheless the 618 Festival is still generating a Gross Merchandise Value (GMV) increase from baseline.  Last year combined GMV on major ECommerce platforms for the 618 Festival totalled RMB 614.3 billion (USD 85.79 billion), up 5.4% from 2022.  A similar growth is expected by analysts this year.

Performance wise Alibaba is down 2.9% in the past 5 days.  Alibaba has dropped 15% last year but has slowly recovered in 2024.  Wall Street Analysts are bullish on Alibaba with a Buy rating, Target price of USD 103.70, an upside potential of 38%.

$JD.com(JD)$  is down 3.6% in the past 5 days but is up 5.4% year todate.  In 2023, JD.com has dropped 22%.  Wall Street Analysts are bullish on JD.com with a Buy rating, Target price of USD 39.22, an upside potential 35%.

Pinduoduo is down 4.8% in the past 5 days but in 2023, it had skyrocketed by 93%.  Wall Street Analysts are bullish on Pinduoduo with a Buy rating, Target price of USD 217.75, an upside potential of 50%.

Pinduoduo (PDD) has overtaken Alibaba recently to become China's most valuable ECommerce company.  PDD now has a market capitalisation of USD 200.11 billion versus Alibaba 's market capitalisation of USD 179.7 billion.

PDD's net income attributable to shareholders in Q1 24 surged 246% while Alibaba' s net income plunged 86%.

PDD reported stellar Q1 24 results in May, sending its shares up by 7.5%.

JD.com is a distant 3rd with market capitalisation of USD 48 billion. 

PDD is synonymous with its value for money positioning and the growth of its international arm Temu has helped PDD to overtake Alibaba as China's most valuable company in ECommerce. 

Competition is intense among the 3 ECommerce Giants with  major discounts given by all 3 to stay competitive.    For now PDD is the market leader. 

However it is interesting to note that Michael Burry of the Big Short Fame has been buying Alibaba and JD.com recently.  He joined Ray Dalio who has been buying into iShares China ETF (MCHI)  since the 3rd quarter of 2023.  Michael Burry has reduced his position in Amazon and replace them with Alibaba and JD. com, making them his largest portfolio holdings.  I believe both Michael Burry and Ray Dalio see value in these 2 Chinese ECommerce stocks. 

Alibaba versus Pinduoduo versus JD.com - Which is a Better Buy? 

I like all 3 companies but I believe that Pinduoduo may have the edge in terms of upside potential and growth.  Pinduoduo is the "new kid on the block" but the fastest growing Chinese ECommerce stock now.  

It is exciting times ahead for all 3 companies as there is a lot of exponential growth ahead.  According to Statista, revenue in the Global ECommerce market is projected to reach USD 4,117 billion in 2024 and is expected to have an annual growth rate in the next 5 years of 9.49%.  The projected market volume will reach USD 6478 billion by 2029.  

Investing is a marathon, not a sprint.  It is a great strategy to buy undervalued stocks like Alibaba, Pinduoduo and JD.com as they have the greatest upside potential. 

@Daily_Discussion  @TigerStars  @MillionaireTiger  @Tiger_comments  @CaptainTiger