JD.COM

Analysis before buying or selling JD.com shares

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In order to assist you with gaining success in your investment in the JD.com share price, we offer you the opportunity through this dedicated article to learn some useful information for completing comprehensive analyses. In fact, on this page we will examine a number of significant aspects of this asset including this company’s activities, its major adversaries in this market and its recent partnerships. We will also explain how to complete a comprehensive and pertinent fundamental analysis of this share price with the factors you should take into consideration.

Can I receive dividends when I buy JD.com shares?

Yes

ISIN code: US47215P1066

Ticker: HKG: 9618

Index or market: HKG

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Elements to consider before selling or buying JD.com shares

Analysis N°1

Firstly, it could be extremely advantageous to monitor the development and diversification of the portfolio of products sold on the JD.com platform that would enable it to reach more clients.

Analysis N°2

The strategic partnerships of JD.com with other large groups and companies that could enable this Chinese company to increase its turnover.

Analysis N°3

We would also attentively follow this group’s international expansion strategy that is attempting to reach a larger geographical market.

Analysis N°4

Clearly, you also need to monitor the direct competitors of JD.com and their major publications and announcements that could change the size of their market shares and thereby positively or negatively affect this company.

Analysis N°5

The financial results, announced annually and quarterly, should of course be analysed. For this we would recommend systematically comparing the results with the analysts’ predictions and the objectives fixed by the company’s strategic development plans.

Analysis before buying or selling JD.com shares

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General presentation of JD.com

We shall now take a few moments to examine the JD.com Company in some detail together with its characteristics. In fact, to comprehend how this company may grow in the future it is imperative to understand its activities and sources of revenue among other things.

JD.com Inc. is a Chinese group specialised in the sector of online distribution. More precisely, this company is second in China regarding the distribution online of products for the general public. But this company is also developing another activity on the markets by placing third party sellers in contact with clients.

To best understand the activities of this group it is possible to divide them into different sectors according to the turnover generated and the manner it does so:

The sale of products is of course the largest sector of this company’s activities and in fact generates nearly 88.5% of this company’s turnover. This concerns electrical products made for the general public and household appliances such as computers, accessories, digital products, mobile telephones, televisions, media players, speakers, cameras, digital video recorders, and games consoles among other things as well as more general consumer products such as clothing and accessories, household items, luxury products, media products, leisure products and sports equipment.
Finally, the remaining 11.5% of the turnover is from the supply of services.

Photo credits: ©unitysphere/123RF.COM

The major competitors of JD.com

Let us now examine the segmental environment of the JD.com Company. In fact, although this company is actually one of the leaders in this activity sector, it still has some significant competitors that you should be aware of and indeed analyse before launching into your analysis of this stock market share price. Here therefore is information on the two principal adversaries to JD.com:

Amazon

Of course you should closely follow the Amazon Group. This is an American company that is also specialised in online commerce which is based in Seattle in the United States. Amazon is also one of the web giants in the so called GAFAM group which also includes Google, Apple, Facebook and Microsoft. Amazon began its history by selling books online and then progressively diversified into sales of other products, firstly cultural then merchandise. Nowadays Amazon sells a huge range of products including groceries that can be ordered online. The Amazon Group was originally introduced onto the stock markets through Nasdaq in 1997. This company currently boasts one of the largest stock market capitals worldwide and employs over a million people around the world. For its development, apart from its original site in the United States, the group has opened numerous specific sites in various countries around the world.

Alibaba

The huge Chinese group Alibaba, which is number one in this sector in China and lies just above JD.com, is also clearly a competitor you should monitor closely. This is a Chinese company quoted on the stock markets that mainly exercises activities related to the internet, notably for the general public of which the objective is to simplify trades between companies in China as well as internationally. It therefore uses payment and retail sales platforms as well as a search engine for the available products as well as providing cloud computing services. Its activities therefore greatly resemble those of Amazon but the Alibaba Group generates even more revenue than its American counterpart.

The major partners of JD.com

As you may have noted, the JD.com Group has some major competitors. However it can also count on the support of companies with which it has implemented strategic partnerships. We will now examine two particular recent examples of this type of alliance to assist you in understanding their advantages.

SMCP

The first partnership we shall examine here was between JD.com and SMCP in 2019. The two companies announced the signature of a major contract that enabled the clients of JD.com in China to access the Sandro and Maje collections that are currently among the most popular brands on the luxury market available in this country.

Farfetch

Another strategic partnership was signed in 2017 between JD.com and the English e-tailor Farfetch through Toplife which is an e-commerce platform in the luxury sector of the Chinese giant. Farfetch then attempted to launch its own website in China by capitalising on the data from JD.com on the behaviour of the Chinese consumers and the abilities of its Luxury Express logistics service. However, Farfetch finally failed in overtaking its partner and instead strengthened its partnership with this company in 2020 to be able to access the 300 million JD.com platform users. Through this strategic partnership the English e-tailor was able to benefit from a favoured position on the JD.com software and obtain instantaneous access to the 3,000 brands of the Farfetch network for millions of JD.com clients. These two companies are also linked by other partnerships as Farfetch had previously acquired the Toplife luxury products platform from JD.com with the objective of merging with its Chinese branch.

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Frequently Asked Questions

When was the JD.com company share price introduced onto the stock markets?

The JD.com group actually made its entry onto the stock markets in May 2014 through the American Nasdaq stock market. At the time of its initial entry the company managed to raise nearly 1.78 billion dollars. You can currently find this company on the Nasdaq Global Select Stock Market where you can follow its share price in real time. The quote for this company’s share price on this market is of course in American Dollars.

Which type of analysis should you favour to anticipate the trends of the JD.com share price?

To be able to best anticipate the future trends of the JD.com share price you should complete not one but several different analyses. The most common and popular ones are of course the fundamental and technical analyses. However, in addition to these you can also use a financial analysis, a segmental analysis or a ratio analysis.

Where and how to buy JD.com shares?

The purchase of Chinese company shares is relatively complex as only a few financial entities in Europe are authorised to acquire shares in these companies. However there does exist certain placement solutions that do offer this asset for trading where you can speculate and take position on a rise or fall in this asset using derivative products such as CFDs, or ‘Contracts for the Difference’ which are accessible through online trading platforms approved by the market authorities.

Trade the JD.com share!

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