We discussed adding JD and BABA in the Morning Report and, while we're adding both to the LTP, I think JD is less risky due to their large cash position as well as the fact that their CEO hasn't pissed off the Communist Party. So, our Top Trade Alert is:
🤓 Here is an investor report on JD.com (JD) based on the information available from my web search results. Please note that this is not a professional investment advice and you should do your own research before making any investment decisions.
The Good
- JD.com reported $247.7 billion USD in revenue for the fiscal year ended in December 2023, up 7.6% year over year1.
- JD.com’s net income surged 50% to 6.6 billion yuan ($0.9 billion) in Q4 FY 2023, beating analysts’ estimates of 5.87 yuan ($0.8 billion) per share2.
- JD.com’s annual active customers increased 11.9% to 531.9 million in Q4 FY 20231.
- JD.com’s founder and CEO Richard Liu bought about $100 million of the company’s Nasdaq-listed shares during the past quarter, showing his confidence in the company3.
- JD.com has been expanding its overseas business, especially in Europe, Southeast Asia, and Latin America, through its cross-border ecommerce platform JD Worldwide4.
- JD.com operates a logistics business, JD Logistics, which is the largest integrated supply chain and logistics service provider in China and has been growing rapidly4.
The Bad
- JD.com’s revenue growth has been slowing amid the Chinese government’s crackdown on big tech, which resulted in a record $2.75 billion antitrust fine in April 20232.
- JD.com has been facing intense competition from its rival Alibaba but also newer players like Pinduoduo and even social media companies like TikTok-owner ByteDance2.
- JD.com’s domestic businesses have been significantly affected by the resurgence of COVID-19 in China since mid-March 2023, which has disrupted consumer spending and supply chains1.
