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rexlomax
Feb 12, 2024 4:04 PM

JD valuation is illogical. Long

JD.com, Inc.NASDAQ

Description

| Buying JD at $23, selling at $36. |

JD.com's "valuation is illogical, with the stock priced as if the company is going out of business soon"

"The discrepancy is quite perplexing. Pinduoduo with a market capitalization of 187.20BN realizes 6.22BN in operating income, while JD.com with a market capitalization of 36.54BN realizes 3.72BN in operating income."

seekingalpha.com/article/4665014-jdcom-mr-market-is-getting-irrational?hasComeFromMpArticle=false

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Ship as sailed.
Comments
OnePunchSolutions
Comparing JD and Alibaba, JD's metrics show a lower price-to-sales ratio (.86 vs. 5.3 for Alibaba), higher price-to-earnings ratio (44.7 vs. 21.9 for Alibaba), and a higher EV/EBITDA ratio (42.5 vs. 28.7 for Alibaba). While Alibaba leads in revenue growth (40.7% vs. JD's 33.4%) and gross margins (41.3% vs. JD's 7.9%), JD's competitive edge lies in its lower valuation and strong growth potential.

Analysts favor JD, rating it as a Strong Buy, with an average price target of $102.24, implying a potential upside of 43.6%. Despite geopolitical concerns and recent market volatility, JD presents an attractive opportunity for long-term investors seeking quality growth stocks at a discount.

In essence, while JD may face near-term challenges, its solid fundamentals, growth trajectory, and favorable valuation make it a compelling investment choice for those willing to weather short-term fluctuations.
rexlomax
@OnePunchSolutions, it's a matter of time. Even with Trump looming on the horizon...
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