To The Moon

$JD.com(JD)$ is scheduled to report its second-quarter 2024 results on 15 August 2024 before the market open.

Analyst are expecting revenue to be pegged at $40.12 billion, indicating growth of 1.03% from the year-ago quarter’s reported figure.

The consensus earnings per share is expected at 87 cents suggesting 16.2% growth from the prior-year quarter’s reported number.

JD.com (JD) Revenue Source

JD.com, Inc. revenue for the last year amounted to 152.77 B USD. The highest performing revenue source is JD Retail, in 2023 it was bringing 138.10 B USD. The greatest contribution to the revenue figure was made by China, in 2023 it brought JD.com, Inc. 153.09 B USD, and in 2022. 155.37 B USD.

JD.com’s strong momentum across the JD Retail segment is expected to have been the key growth driver in the second quarter. A wide range of product categories, including electronics products, home appliances and a large variety of other general merchandise categories, is anticipated to have sustained the company’s customer momentum.Growing relationships with third-party merchants, who are continuously introducing products like premium international brands, are likely to have boosted customer engagement on JD.com’s marketplace platform.

JD.com (JD) Expenses Might Weighed On Q2 performance

Even though their legacy segment might do well for this Q2, there is softness in the new businesses segment is expected to have negatively impacted top-line growth in the quarter under review.

JD’s mounting fulfillment expenses, including procurement, warehousing, delivery, customer service and payment processing expenses, are likely to have weighed on its second-quarter performance.

If we were to look at the expense incurred in Q1, it is pretty significant, so this is an area that I will be watching when JD report its earnings.

JD.com (JD) Price Target Forecast

Based on 16 Wall Street analysts offering 12 month price targets for JD in the last 3 months. The average price target is $40.62 with a high forecast of $55.00 and a low forecast of $31.00. The average price target represents a 55.45% change from the last price of $26.13.

If we were to look at the stock price of JD.com now, it looks like it is on the low side, this could be due to the consumer in China tightening their spending with some economic uncertainities.

But we should be seeing JD.com partnership to expand into other regions could give some results.

JD.com (JD) Year To Date Returns

Another concerns that might deter investors to look into JD, but I am looking forward to JD positive guidance for the rest of 2024.

I believe we could see a better YTD returns for investors.

JD.com (JD) Technical (MACD and KDJ)

Looking at technical, JD is looking to form a potential upside from the MACD, and the KDJ is having a comfortable upward trend.

I would think that we might see some buying strength today (14 Aug), this should help to push the price higher before its earnings.

I will be looking to enter a position for JD.

Summary

With the strong momentum across the JD Retail segment, this could be the driving catalyst for its earnings, what would be interesting is their expenses, and how they would be doing for their new business and also partnership.

I would think we could expect a decent upside after its earnings.

Appreciate if you could share your thoughts in the comment section whether you think JD,com would provide a surprise on its earnings.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.