2 Reasons to Keep an Eye on JD.com Stock

Company Overview - JD com has faced challenges due to geopolitical tensions US China relations Chinese government crackdown on tech sector and COVID 19 economic impact [1] - The company operates an integrated retail model similar to Amazon focusing on low priced products and fast delivery controlling the entire customer experience from sales to logistics [2] - JD com has expanded into new areas such as logistics healthcare and fintech diversifying its business amid intensifying competition in e commerce [3] Financial Performance - Adjusted net profit margin increased from 0 7 in 2018 to 3 2 in 2023 with revenue growing at a compound annual rate of 19 over the same period [3] - Revenue growth rate fell to a multiyear low of 3 7 in 2023 due to competition and weak economic environment but rebounded to 7 in Q1 2024 [5] Valuation - JD com stock is down approximately 75 from its peak with a P S ratio of 0 27 and P E ratio of 11 7 significantly lower than its five year averages of 0 99 and 83 0 respectively [4] - The stock trades at a discount compared to Amazon which has P S and P E ratios of 3 5 and 54 5 respectively [4] Strategic Initiatives - Under CEO Sandy Ran Xu JD com is improving user engagement through lower prices new services and enhanced livestream shopping experiences [5] - The company benefits from a virtuous cycle of lower costs lower sales prices and higher volumes driving customer retention and platform growth [3]