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Is this Michael Burry stock a bargain?
JDJD(JD) Finbold·2025-01-25 20:40

Core Viewpoint - Michael Burry, known for predicting the 2008 subprime mortgage crisis, has recently increased his investment in JD.com, indicating a positive outlook on the company and the Chinese technology sector [1][2]. Company Summary - Burry has doubled his stake in JD.com to 500,000 shares valued at 20million,withthestocktradingpositivelyinrecentmonths[2].−JD.comhasseenareturnofover7020 million, with the stock trading positively in recent months [2]. - JD.com has seen a return of over 70% in the past year, with a strong start to 2025, gaining 18% [2]. - The company is projected to achieve nearly 20% growth in 2025, supported by its focus on global partnerships and digital innovation [3]. - JD.com has established partnerships with Chilean brands to enhance sales of premium products, which is part of its strategy to reduce import costs and improve quality [3][4]. - The company has a diverse portfolio, including electronics and general merchandise, and is well-positioned for market expansion [4]. - JD.com achieved over 20% year-over-year shopper growth during the 2024 Singles Day promotion, showcasing its strong market position [6]. - The firm's AI-powered supply chain and logistics network enhances its manufacturing and delivery operations [6]. Analyst Sentiment - Analysts are optimistic about JD.com, with Jefferies raising its price target from 54 to $60 while maintaining a "Buy" rating, citing strong Q4 management as a growth driver [7]. - BOCOM International has also increased its Q4 2024 revenue and profit forecasts by 3% and 12%, respectively, while maintaining a "Buy" rating [8]. - China Merchants Securities projects a 9% year-on-year revenue increase for JD.com [8]. Valuation Insights - JD.com's Price-to-Earnings (P/E) ratio is currently at 12.94, which is relatively low compared to its tech peers, suggesting it may be undervalued [9]. - Despite a 70% price increase over the past year, JD.com may still be trading below its true potential based on earnings, indicating it could be an attractive investment opportunity for long-term investors [10].