Cathie Wood, the founder of ARK Investment, known as the "goddess of technology stocks", has accelerated the pace of reducing jd.com shares. On Jan. 10, the agency sold about 83,000 JD.com's U.S. stock depositary securities (ADRs), the largest reduction since July 2021. ARK has been reducing its holdings in JD.com since mid-September 2021 and still holds 2.4 million shares, or about 0.18 percent.
Coincidentally, just after this move, on the evening of January 11, JD.com's U.S. stocks rose 10.29% overnight, the largest increase since August 2021.
Wood sister sold before dawn, the institution is collectively optimistic about one of the most stable Chinese stocks in 2021
Less than two days after the sale of JD.com shares, JD.com rose more than 10% overnight, not only setting the biggest gain since August last year, approaching a one-month high, but also leading all Chinese stocks.
Last night, including JD.com, the entire Chinese stock sector ushered in a rebound. As of press time, JD.com's Hong Kong stocks are close to 10%, and the Hang Seng Technology Index has gradually expanded to more than 3%. JD Group's Hong Kong stocks rebounded from a low of 245 yuan for 5 consecutive days, with a cumulative increase of more than 20%.
It is worth mentioning that in the decline in Chinese stocks since last year, although the price of JD.com ADR has dropped by one-third from the peak in March last year, the decline in US stocks and Hong Kong stocks has been about 15% in the whole year, and there has been a significant rebound after the big fall since July 2021. As a result, JD.com became one of the most stable Chinese stocks of the year.
In addition, major institutions have "against the wood sister" to reduce their holdings, giving an optimistic evaluation:
Rating agency Atlantic Equities covered JD.com for the first time in its latest report, with an overweight rating and a target price of $100 per share.
Macquarie gave JD.com an initial rating of outperforming the market with a target price of HK$402.
Jefferies analyst Thomas Chong maintains a "buy" rating on JD.com, with the latest price target at $122 per share.
Citigroup analysts believe that JD.com's positive prospects will not be affected by Tencent's dividend, and still give a $115 target price.
Goldman Sachs believes that JD.com's resilient first- and third-party retail businesses can continue to drive solid fundamental growth with strong supply chain capabilities, with revenue expected to maintain healthy growth of more than 20% in 2022 and stable profit margins; it is included in the "buy with confidence" list.
CICC expects that due to the strong performance of necessities and electronic supplies, JD.com is expected to outperform its peers, and its exclusive partner status at the Spring Festival Gala will accelerate its short-term user growth; maintaining a outperforming rating with a us stock price target of $94.
This is because Jingdong embraced the Spring Festival Gala in China and landed in Europe overseas. The upcoming traffic peak will apply JD.com's advanced experience in domestic logistics and retail to foreign countries, and these events have allowed institutions to maintain a good outlook for the prospects of the e-commerce giant.
China embraces the Spring Festival Gala, Europe competes with Amazon, what are the results?
In the view of the US stock research agency, jd.com's sharp rise is closely related to its recent actions.
On the domestic side, on January 5, Jingdong officially announced that it won the exclusive interactive project cooperation right of CCTV Spring Festival Gala, and will relay the vibrato in 2021 and stand in the spotlight of the Spring Festival Gala of the Year of the Tiger. JD.com said that the interactive activities will continue from the 22nd of the Waxing Moon to the Lantern Festival, and a total of 1.5 billion red envelopes are expected to be distributed.
Although the market is clear, it is difficult to achieve long-term stability and effectiveness in the flow of new and active Spring Festival Gala activities, and the loss rate is high. However, for shopping sites such as JD.com that attach importance to transactions rather than continuous online time, on the basis of excellent supply chain guarantees, users, especially newly registered users, are expected to carry out follow-up shopping actions after completing the process of entering the platform. Moreover, due to Jingdong's own positioning and other reasons, at present, its annual active user data is still only about two-thirds of Ali and Pinduoduo, and the traffic feast of the Spring Festival Gala will help Jingdong achieve a wide range of "face", enhance brand image and popularity - especially in the sinking market that the three major e-commerce giants strive for at present, the coverage ability of the Spring Festival Gala is still super strong.
Therefore, the Spring Festival Gala traffic is relatively important for JD.com. Especially in the traffic competition with Pinduoduo and Ali, obtaining the Spring Festival Gala channel means cutting off an important source of traffic for the two major opponents. At present, Ali and Pinduoduo are also launching their own New Year goods and New Year activities, and JD.com has expanded its winning range in the next month.
In addition, Jingdong has announced that its logistics will not close this year's Spring Festival, which is the eleventh year of insisting on service. Jingdong said that during this year's Spring Festival, it can ensure that 30 provinces, nearly 300 cities, and 1,500 districts and counties across the country can place orders and receive goods normally. Some core cities can still enjoy services such as 211 limited delivery and same-day delivery for the purchase of JD.com's self-operated goods. For JD.com, which has its own logistics, this undoubtedly forms a competitive advantage over the other two major rivals.
At the beginning of December 2021, Jingdong has revealed that more than 1,300 logistics warehouses across the country have opened a comprehensive stockpile, and communication with highways, railways, aviation and other departments is also advancing, in order to combine the relevant policy measures of the state to ensure the smooth flow of goods across the country during the Spring Festival. In addition, in the Jingdong logistics part, Jingdong's 41 "Asia One" intelligent logistics center, sirius, earth wolf and other intelligent sorting, transportation equipment and hundreds of robot warehouses have been increased layer by layer, and the amount of welfare protection for employees has totaled up to 200 million yuan last year, and will continue to invest this year.
As a basis for china, JD.com's recent foreign development has given positive expectations to major investment banking institutions. At 22:00 Beijing time on January 10, JD.com announced that it would open a new model of "super warehouse store" in the Netherlands - Ochama. On the same day, two Ochama warehouse stores in Rotterdam and Leiden, the Netherlands, officially opened, and two new stores in Amsterdam and Utrecht will also open in the near future. They pioneered the warehouse-store integration model, which will use robot stocking and other formats to a certain extent.
Ochama is an independent retail brand of JD.com, a business of JD International. Broadcasting International believes that this model benchmarks Amazon Go, a subsidiary of Amazon. The Central Broadcasting Network also commented that this model is a frontier exploration of "new infrastructure going to sea".
This is the first time that JD.com has landed an independent retail brand business in Europe, and Ochama has become the first retailer in the Netherlands to offer online shopping in all categories, including fresh food. "Ochama" means "omnichanel amazing", i.e. "amazing omnichannel shopping". Ochama can create 10% additional merchandise margin based on its technical capabilities alone, achieving a 10% discount on the starting price of goods. In the past 2021, JD International has successively opened warehouses in the United Kingdom, Germany, the Netherlands, the Middle East and other places, more than half of which are automated warehouses, and currently operate a total of 80 bonded warehouses and overseas warehouses worldwide.
Lei Ling, project leader of Ochama at JD International, said: "With the company's rich retail experience and advanced logistics technology accumulated over the years, we strive to create an unparalleled shopping experience for European customers with the best prices and services. "However, there is an Amazon Go store in the US and An Amazon Fresh in the UK. JD.com still needs to find ways to get consumers to indulge in the effect of overseas giant brands and turn to their love for their new brands to gain more shares, which will be a long-term process.