JD.com's Accelerating Growth Could Crush the Bears
Shares of JD.com (NASDAQ: JD) surged this week after the Chinese e-commerce giant's second-quarter numbers crushed analyst expectations. Its revenue rose 23% annually to 150.3 billion RMB ($21.9 billion), topping estimates by nearly $1 billion and marking its strongest growth in three quarters.
JD's adjusted net income rose more than sevenfold to 3.56 billion RMB ($518.4 million), or 2.30 RMB ($0.33) per ADS, which also beat expectations by 25 cents. JD expects its revenue to rise 20%-24% annually in the third quarter, but didn't provide any bottom-line guidance.
JD's big beat indicates that many fears about the company -- including competition from Alibaba (NYSE: BABA) and Pinduoduo, the slowdown in the Chinese economy, and the trade war -- were overblown. As a result, shares of JD, which remain down about 30% over the past two years, could still have room to run.
Source Fool.com
