Important note

This AI stock analysis for JD.Com is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

JD.Com - AI Stock Analysis

Analysis generated February 18, 2025

JD.com, Inc. is a leading e-commerce company in China. It operates one of the largest online shopping platforms in the region and has built a robust logistics network to ensure quick and reliable delivery of goods. JD.com has also ventured into technology services, including AI and big data, aiming to diversify its revenue streams. As of late, there have been both positive and negative indicators in its business performance, which we will explore in detail.

Fundamental Analysis

JD.com's revenue for the last quarter was 260 billion CNY, representing a decrease of 10.64% compared to the quarter before it. While this is concerning, the bigger issue is the year-over-year decline of 14.93%. Such a drop suggests potential underlying issues that the company needs to address.

The net income for the last quarter was 11.7 billion CNY, a decrease of 7.22% compared to the previous quarter. However, it shows a remarkable year-over-year increase of 246.15%. This positive growth can be attributed to stringent cost control and operational efficiencies.

The EBITDA for the last quarter was 15.9 billion CNY, marking an increase of 24.88% compared to the previous quarter. Compared to the same quarter last year, it increased by an impressive 276.19%, indicating robust operational growth and increased profitability.

The current Price-to-Earnings (P/E) ratio stands at 13.44. This P/E ratio is within a normal range, suggesting that the stock isn't overpriced nor undervalued at the moment. Investors typically compare this ratio to historical P/E ratios of the company and its industry to gauge the stock's relative value.

Technical Analysis

Today’s stock price of JD.com is $38.91, a minor decrease of 0.23% compared to a month ago. However, compared to a year ago, the stock price has seen a significant increase of 65.29%, indicating positive long-term sentiment.

The current stock trend is bearish. The SMA10 is 40.65, slightly lower than the previous SMA10 of 40.77, suggesting a potential downward trend in price movement. The Relative Strength Index (RSI) is at 28, indicating that the stock is in oversold territory. This could mean a potential buying opportunity for investors looking for an entry point.

Alternative Data Analysis

JD.com has 121 open positions as per the latest data from job boards, showing stability in its human resources. Employee sentiment is neutral, neither strongly positive nor negative, suggesting a balanced internal business environment.

The estimated number of visitors to JD.com's website is around 67 million. However, this number has decreased by 20% over the past couple of months, raising concerns about declining customer acquisition. Furthermore, the daily download rate of JD.com's mobile apps stands at 47,000, down by 37% in recent months. Both metrics indicate a potential loss in customer interest and engagement.

JD.com maintains 88,000 followers on its Twitter page, but the number of followers has stagnated, growing by 0% over the last couple of months. An AI score from AltIndex positioned JD.com at 40, which is a sell signal, adding another layer of caution for potential investors.

Conclusion and Recommendation

JD.com presents a mixed bag of indicators for potential investors. While its long-term stock performance and significant year-over-year growth in net income and EBITDA are encouraging, the short-term revenue decline and bearish stock trend raise concerns.

Alternative data reflecting decreasing website visitors and app downloads adds to the cautionary signals, suggesting a waning interest among customers. The neutral employee sentiment and a somewhat concerning AI score reinforce the need for a cautious approach.

Given the current data, it is advisable to monitor JD.com closely. While there are elements that signal growth and a potentially undervalued stock, the negative trends in customer engagement and sales metrics require careful consideration. Diversified investors looking for exposure to the Chinese tech and e-commerce markets might find it worthwhile to keep JD.com under watch for further developments.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.