Wall Street analysts predict another record-breaking holiday season for Chinese internet retailer JD.com Inc (JD). JD stock’s target price was raised by Bernstein earlier this week.
Many investors have found the stock market extremely complex, frequently catching even the most experienced traders by surprise. The market sometimes moves in the opposite direction despite results being in line with expectations. This often leads to doubts and speculations about such events. Then, it is wise to keep an eye on the historical price performance of a stock. A thorough understanding of the stock’s trends would also be beneficial, both in the short-and long-term. The share price of JD.com Inc (JD) has increased by 6.39% over the past week but is up 19% over the last quarter. Over the last six months, the stock’s price has plummeted 54.46% but has increased 10.32% in the past year to date.
Bernstein analysts recommended that investors take JD.com “Market outperform” and set JD.com’s target price at $120. As experts have pointed out, the online retailer stands to benefit from buyers’ continued transition to e-commerce. Additionally, JD.com has access to financial capital through which it will be able to expand its business and diversify into new markets. Taking JD.com as an example, Bernstein analysts expect the retailer to outperform offline competitors and see strong growth in its e-commerce segment in particular. Particularly during the Chinese New Year, when high consumer activity is traditionally observed, the company is expected to see a significant increase in its revenues.
The litigation against JD.com’s main competitor Alibaba in 2020 proved beneficial for the company. Because of this, JD shares have increased in price by almost 150 percent in the past year.
The fourth-quarter results from JD.com are expected in February. Analysts believe that revenue will increase by almost 40% to $34 billion. The company expects its earnings to be in the range of $0.08 – $0.22 per share.
Currently, JD.com Inc (JD). is in a favorable position. The COVID-19 outbreak has allowed it to achieve strong results in several segments, including groceries, telemedicine, and pharmaceutical delivery. JD.com is one of the biggest online retailers in China and one of the largest logistics operators.