The China-based online shopping platform has aggressively been capitalizing on consumer’s move towards online shopping by investing heavily in technologies and infrastructure. This is evident from record revenue and earnings numbers in the September quarter. JD has topped third-quarter earnings estimate by $0.09 per share, with an 80% increase compared to last year’s period. Its revenue grew 27% from the year-ago period while active users jumped 32.1% year over year to 441.6M
Analysts expect JD.com stock to hit $100
The robust revenue and user growth have helped China based online shopping platform in impressing the market pundits. Citi has set a $107 price target for JD.com stock, with a buy rating. Benchmark has also provided a Buy rating and raised the price target from $70 to $100 as the firm expressed confidence in market trends. The firm expects JD to extend the revenue and user growth momentum into the December quarter and beyond. Meanwhile, Susquehanna has set a price target of $90, saying The firm says Q4 has started off nicely as well and praises JD’s position in the “large and growing Chinese e-commerce market.” JD.com stock price soared almost 144% since the beginning of this year on the back of consumers shift towards online platforms. The coronavirus spread has also contributed significantly to the revenue growth trends.
Physical stores growth is among the catalysts
CNBC reported that JD.com plans to expand its retail presence, with expectations of opening 5 million retail stores in the next three years. “In addition to our centralized online app, we also have a lot of de-centralized offline platforms,” Xu chief executive of JD Retail said. JD.com appears in a strong cash position to invest in growth opportunities. The company has generated more than $4 billion in free cash flows in the latest quarter.
