Jd shares are up 30 per cent over the next year
For investors, jd.com is more suitable for investment than alibaba, and the stock is likely to rise 30% in the coming year, according to an article in the U.S. financial media, barron’s, on Sunday.
Barron’s thought, as a result of unnecessary worry, run lose alibaba jingdong shares from the beginning of August, but in fact, jingdong section is “double a” shopping in China one of the biggest beneficiaries.
Jd.com’s quarterly results in early August showed a drop in gross margins, which spooked investors. But barron’s argues that the reality is not as worrying as it seems. Jd.com’s gross profit margin fell because of aggressive promotions in June and adjustments to the way some third-party logistics charges were collected.
After alibaba announced its stake in newbie in September, there were concerns that they posed a greater threat to jd.com. But it’s also a bit of a stretch, according to barron’s, which has an advantage in the middle and last mile delivery.
Jd shares are up 52 per cent this year, but are down 14 per cent since August, while alibaba has risen 15 per cent in the same period and has doubled this year.