Those headline numbers looked solid, but JD’s stock plunged 11% after the report and remains 60% below its all-time high from February 2021. Let’s see why the bulls retreated — and if JD is a potential turnaround play for 2023. Investors of record on Thursday, April 6th will be given a dividend of $0.62 per share on Thursday, May 4th. The company is scheduled to release its next quarterly earnings announcement on Thursday, March 14th 2024.
- In 2022, JD.com reported a remarkable year-over-year increase in revenue, reaching over one trillion CNY (around USD 140 billion), showcasing its strong market presence and continuous growth.
- Expanding its product categories and reaching untapped customer segments are potential avenues for growth.
- The company reportedly spent about $3.6 billion on human resource expenses last quarter.
Alphabet, Meta and Microsoft all set new records, with Microsoft’s worth now exceeding $3 trillion. Interest rates, sitting around 5.5%, have risen substantially from the near-zero rates of the pandemic. And some tech companies are reshuffling staff to prioritize new investments in generative AI. But experts say those factors do not sufficiently explain this month’s layoff frenzy.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research tickmill review and data to our policies on content and your personal data. On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Related Companies and Tools
JD.com’s investment in advanced technologies, including AI and big data, also opens doors for further innovation in customer experience and supply chain management. JD.com operates in the highly competitive e-commerce industry, which has experienced rapid growth in recent years. The company’s key advantage lies in its expansive product range, efficient logistics infrastructure, and commitment to customer satisfaction. JD.com’s strong logistics network provides a competitive edge compared to its peers, enabling faster and more reliable deliveries. Its strategic partnerships with leading companies have also expanded its market positioning. That change wasn’t too surprising, since Alibaba and Pinduoduo also stopped disclosing their exact user numbers several quarters ago.
Alibaba, JD.com, and Other Stocks Fall on China’s Disappointing GDP Report
Additionally, China’s NDRC made positive comments on Alibaba and Tencent. JD.com has several growth opportunities to leverage in the dynamic e-commerce landscape. The continued growth of online shopping in China and globally presents a vast market for JD.com to capture. Expanding its product categories and reaching untapped customer segments are potential avenues for growth.
What’s Going On With Alibaba Stock Thursday?
Alongside, our most recent consensus estimate is anticipating revenue of $42.56 billion, indicating a 0.65% downward movement from the same quarter last year. “There is a herding effect in tech,” said Jeff Shulman, a professor at the University of Washington’s Foster School of Business, who follows the tech industry. “The layoffs seem to be helping their stock prices, so these companies see no reason to stop.” JD said revenue in the quarter rose 7.6% to $39.7 billion, ahead of expectations at $38.7 billion, with strong growth from the services segment, where revenue was up 30.1% to $7.5 billion. However, revenue at the core JD retail business increased just 5% in the quarter, a reflection of the broader weakness in China. Sales of general merchandise, which includes groceries, were down 10% to $11.2 billion.
Sign-up to receive the latest news and ratings for JD.com and its competitors with MarketBeat’s FREE daily newsletter. Shares of the company have depreciated by 16.36% over the course of the past month, underperforming the Retail-Wholesale sector’s gain of 1.31% and the S&P 500’s gain of 3.28%. “It’s kind of a self-fulfilling prophecy in some sense,” said Shulman of the University of Washington. “They panicked and did the big layoffs last year, and the market reacted favorably, and now they continue to cut to weather a storm that hasn’t fully come yet.” Pfeffer, who is an expert on organizational behavior, says that when one major tech company downsizes staff, the board of a competing company may start to question why their executives are not doing the same.
Earnings and Valuation
This suggests a possible upside of 89.0% from the stock’s current price. View analysts price targets for JD or view top-rated stocks among Wall Street analysts. In 2022, JD.com reported a remarkable year-over-year increase in revenue, reaching over one trillion CNY (around USD 140 billion), showcasing its strong market presence and continuous growth.
During its “6.18” June online bargains event, an important barometer of Chinese consumer spending, the company’s sales volume surged to a record high. The new everyday low-price strategy, reorganization, and restructuring of the first-party business in 2022 will lead to weak growth in the medium term. Unless circumstances start to improve broadly, Chinese consumer-facing companies may start to feel significant pressure.
As such, investors should approach JD stock with vigilance and caution moving forward. JD’s new businesses segment (which includes its cloud, fintech, and healthcare units) and its stake in https://traderoom.info/ the online grocer Dada also continue to bleed red ink, but it narrowed most of those losses over the past year. Since then, JD stock has decreased by 23.1% and is now trading at $22.22.
Nasdaq Futures
On the bright side, JD Retail’s adjusted operating margin still rose 60 basis points to 3.7% for the full year as it reined in its spending and streamlined its business. In its second-quarter earnings report, JD.com reported continued sluggishness, and the stock fell 3% on the news even as it topped estimates. Analysts and investors alike will be keeping a close eye on the performance of JD.com, Inc. in its upcoming earnings disclosure. On that day, JD.com, Inc. is projected to report earnings of $0.65 per share, which would represent a year-over-year decline of 7.14%.
The company plans to create seven listed firms with at least 100 billion yuan ($14 billion) a piece market values, Bloomberg cites in an internal letter to employees. Sign-up to receive the latest news and ratings for JD and its competitors with MarketBeat’s FREE daily newsletter. Sign up to receive the latest news and ratings for JD and its competitors with MarketBeat’s FREE daily newsletter. I personally wouldn’t buy JD until its growth either stabilizes or accelerates again. If I had to pick a Chinese e-commerce stock right now, I’d definitely buy Pinduoduo for its stronger growth rates instead of JD.
Executives justified the mass layoffs by citing a pandemic hiring binge, high inflation and weak consumer demand. On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
