JD.com has emerged as one of investors’ favorite Chinese tech stocks this year. It focuses on the e-commerce business. The company is China’s second-largest e-commerce company by sales after Alibaba Notably. JD.com has investment and commercial relationships with Google and Walmart. Google made an investment of $550 million in JD.com in June 2018. The company took a minority stake in the business. The company also cut a deal to help JD.com grow its international business. The jd stock at https://www.webull.com/quote/nasdaq-jd has risen over 7.0% since the Google investment.
Benefits for Investors in the stock.
Like Amazon, JD.com benefits from the spike in online shopping amid COVID-19. China placed several cities on lockdown at the height of the coronavirus infections in the country. With the lockdowns in place and physical retail outlets closed, Chinese households started shopping online, which increased the demand for JD.com’s e-commerce service.
Investors’ strong appetite for jd stock also comes as the company prepares for a secondary listing of its shares in Hong Kong, following in the footsteps of its larger rival Alibaba. The listing could help the company raise as much as $3.0 billion.
To survive the pandemic, companies want to shore up their liquidity. Recently, companies like Apple, Walt Disney, and Netflix have tapped the debt market to raise additional cash. JD.com doesn’t seem to have a liquidity problem. The company wrapped up 2019 with $9.0 billion in cash. The Hong Kong listing promises to boost the company’s war chest.
Is JD Stock Your Best Chinese Play?
In 2020 you can do better. Alibaba shares are still down slightly for 2020, but rival JD.com is up by nearly one-third.
JD is due to deliver its first-quarter report on May 15. The consensus is for earnings of 11 cents per share on sales of $19.17 billion. But there’s a “whisper number” that’s higher, at 18 cents.
There are reasons for JD’s recent rise, but there are different reasons for you to consider an investment in this stock today.
JD.com Might Raise $3 Billion via Secondary Offering in Hong Kong
Hong Kong has been one of the most volatile equity markets in the world in the last 12 months. The region has experienced unpredictability first due to protests against China and then due to the COVID-19 pandemic.
- Com’s listing will give investors in Hong Kong and China a chance to invest in one of the fastest-growing e-commerce stocks in the world. JD.com is often compared to e-commerce giant Amazon and has managed to grow at a fast clip over the years. With annual revenue of approximately $80 billion in 2019, JD.com is a technology heavyweight. If you want to know more stock information like teum stock, you can visit at https://www.webull.com/quote/nasdaq-teum .