Should I Stay Invested In JD.com?
πππSeptember 26 2024 marks the turning point in Chinese stocks after the Chinese authorities introduced a series of supportive policy measures to stimulate the economy. This had sparked a massive rally for Chinese stocks. However since then Chinese stocks have been on a roller coaster ride.
Nonetheless I believe the recent rally isn't really over but just taking a breather. This time the Chinese authorities have unveiled more than 10 key measures and papers since September that encompass monetary, fiscal policies on property as well as equity markets. In other words the Chinese authorities are intent on making a significant impact.
$JD.com(JD)$
On August 15, JD.com released its Q2 24 performance in which its net revenues for the quarter increased by 1.2% to RMB 291.4 billion (USD 40.1 billion) compared to previous year quarter.
Net income increased by an impressive 92% to RMB 12.6 billion (USD 1.7 billion) compared to previous year quarter. Diluted net income per ADS increased by 97.3% to RMB 8.19 (USD 1.13) compared to previous year quarter of RMB 4.15.
In Q2 24 JD.com have entered into strategic partnership agreements with multiple brands which includes Xiaomi, Lenovo and Oppo with a focus on smart devices, intelligent supply chain and AI technology integration.
JD Health have partnered with a number of pharmaceutical companies to debut their new and speciality drugs online including Sinqi Pharmaceutical, Sanofi and GeneScience.
JD Logistics have continued to optimise its network layout, algorithm based vehicle scheduling capabilities and product structure. This is to achieve cost reduction and efficiency gains, resulting in a significant improvement in profitability.
JD. com has announced on August 27 that its Board of Directors has approved a new share repurchase program effective from September to repurchase up to USD 5 billion worth of its shares. These include ADSs over the next 36 months through to the end of August 2027. This would reduce the number of outstanding shares, which should drive up the value of the remaining shares.
Wall Street Analysts are bullish on JD.com with Buy rating, an average Target price of USD 47.73, an upside potential of 19% according to Tipranks. Billionaire investor David Tepper of Apppaloosa Management and Michael Burry of the Big Short fame are sticking to their China bets.
David Tepper just said to buy "Everything" when asked what Chinese stocks to buy. It is a big call but David Tepper and his fund's track record of 28% annualised returns speaks for itself.
Michael Burry's Scion Asset Management has about half of its USD 200 million portfolio invested in Chinese tech giants which includes 21% in $Alibaba(BABA)$
In many ways JD.com is similar to $Amazon.com(AMZN)$
Should I Stay Invested in JD.com? Absolutely! JD.com offers great value for my money and has huge exponential growth ahead.
@Daily_Discussion @TigerStars @Tiger_comments @MillionaireTiger @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Haha really doubt it. But if you already have it, just hold it