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How’s it going today guys welcome back to the channel so today we’re gonna be talking about jd calm it is one of the stocks i am personally invested in and it is also one of the worst performing chinese internet or e-commerce stocks right now as i’m sure we know you know the chinese market is currently selling off hot and heavy this is one of the worst performing
Stocks right now or one that is being hit the hardest and as of today they just hit not only a 52-week low but an all-time low for this stock this is a company that went public back in 2014 and this is the lowest price this stock has ever traded at even since their initial public offering so we are seeing a serious correction taking place with this stock now i’ve
Done videos in the past talking about jd as well as my holdings of this company personally i plan on investing another five thousand dollars into this stock in the next couple of weeks and if i do decide to do that i’m gonna make a video for sure updating you guys on that addition to my portfolio but what i want to talk about in this video is their most recent
Earnings report was it as bad as everyone made it out to be and kind of my thoughts and feelings on this company given this recent quarterly earnings report now before we get into the video i just wanted to mention if you guys are interested in picking up a completely free stock worth up to $1,000 we bull is currently running a promotion where if you open an
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By talking about jd earnings here so first of all revenue came in for this quarter at fifteen point three billion and adjusted earnings per share came in at 12 cents per share in our currency here and that was right in line with what estimates were so they came right in line with what was expected in terms of this quarter for the top line and the bottom line now
Where we have bad news is where we see they had 25% revenue growth year over year four quarter three now in my opinion 25 percent revenue growth is still very strong growth for a company on that is very dominant over there in china they are the largest e-commerce company in terms of revenue as far as i know i don’t believe that alibaba is larger but if they are
I will add a correction there but this was what people saw or what analysts saw as bad news here because this was the slowest year-over-year growth for a quarter since the 2014 ipo so of course everybody started to panic saying okay we got to pump the brakes the growth is going to be slowing down but i still think 25% growth is exceptional growth for a company
And i still would consider this to be a growth beast at this point in time this is kind of also what has been happening with facebook you know seeing slower growth has started to concern a lot of investors but i still see such a large amount of potential for both of those companies going forward now as far as the performance of the stock goes they were down about
5.5 percent after market hours after reporting earnings and then today they were down to an all-time low for this stock and another piece of news that investors were not necessarily happy with was their growth estimates for quarter four or their forward-looking guidance they were anticipating about 18 to 23 percent growth year over year for that quarter compared
To expectations of twenty three point five percent and again alibaba had to do the same thing they had to kind of curb their estimates because of concerns of the trade war and also the slowing economy over in china so they’re kind of curbing their estimates as to not shock people if this is the case so again these were kind of the negative notes of this earnings
Report and that is why we saw that stock going to quite the sell-off but what i want to do is dive a little bit deeper into this earnings report and talk about the things that i noticed and personally what i’m excited about as a jd comm investor and most importantly why this is making me decide to invest another $5,000 into this company so first of all looking at
Their earnings report here we saw that net service revenues were up 49 percent year-over-year that is massive growth there in the service segment of their business annual active customer accounts were up almost fifteen percent year-over-year so you have more people opening accounts with the jd platform and using their services jd+ which if you’re not familiar is
Basically the amazon prime equivalent of what jd is offering so that offers some different services such as free shipping coupons vip customer service exclusive discounts as well as a premium video content delivered through another chinese company iqi why i am not sure on the pronunciation there but that’s kind of like you know a chinese version of netflix they
Have a very nice service there similar to the benefits that amazon prime offers and in this quarter here jd+ surpassed 10 million paying users for jd plus which is fantastic and if you’re looking to compare this to amazon prime amazon prime has a little over 100 million paying members so they’ve gotten about 10 percent of the size of the customer base for amazon
Prime but i think there’s a long way to go for this service here for jd comm and jd plus beyond that we heard they are establishing more relationships with major brands over in china and helping them to take their retail online through jd comm and what this is doing for them by establishing relationships with these big brands is it’s really boosting the credibility
Of jd comm by establishing these relationships and it’s going to make them the go-to online service for basically selling your merchandise online we see the same exact thing happening with amazon where major retailers are making deals with amazon as far as having listings of their products on amazon i mean if you can’t beat them then you might as well join them as
They say and so these retailers rather than competing with amazon or jd com in the e-commerce space believe it’s better to just list their products on these websites and we’re seeing jd comm establishing a lot of relationships with these chinese companies beyond that what i see is one of the most exciting parts of their business is their retail as a service business
And what we found in this quarter is that they had partnered with a chinese fashion giant to provide logistics inventory management and marketing solutions and so basically what they’re doing here is taking all of their back-end technology their back-end logistics and they’re basically selling this as a service they’re helping other retailers with logistics and
Marketing and all kinds of other retail services and they are selling that as a service i think it’s a brilliant idea and it’s an excellent way for jd comm to you know make money in a way that is very different than you know just selling products on the jd comm platform beyond that we also heard that jd launched a new retail platform that allows offline retailers
To improve efficiency of operations through digitalization data mining and visualization capabilities and that is extremely interesting to me because that shows that the jd retail as a service business works for both online retailers and offline brick-and-mortar retailers so jd is offering interesting solutions and services to both online and offline retailers
That is one of the most exciting parts of jd for me in my opinion because there’s so much potential with this in my opinion beyond that another huge piece of information we got in this quarter is that jd logistics is now offering parcel delivery service to customers in three major chinese cities so jd comm is now essentially becoming what we have over here of a
Fedex or a ups where we can basically use them to deliver our packages so not only are they delivering products that are being purchased through the jd platform by their customers they’re also offering parcel delivery for customers who want to ship products and this is one of the major differentiators between jd comm and amazon as well as jd comm and alibaba and
That is the fact that amazon is not shipping their own products they’re not handling the logistics they’re just handling the fulfillment of those orders and then you know ups usps they’re delivering those packages whereas with jd comm they’re handling both the fulfillment and they’re also handling the logistics by delivering those products and they’ve built such
A massive efficient logistics network it is now a logical play for them to be offering that delivery service to other customers for non jd packages which again is another very exciting business venture in my opinion you’re getting like almost like a fedex built right in or a ups logistics company built right in here as a jd investor and then the final piece of
Information i wanted to discuss from this earnings report is that jd completed a 500 million dollar financing round for a company and i apologize in advance of the pronunciation i believe it is dada jd deja which is a joint venture between companies including walmart jd comm and others which is offering one our home delivery service of fresh groceries online so
Jd is involved in some very interesting businesses and i see a huge amount of potential in these side bets and we just recently heard news that the ceo is going to be stepping out of the main business and kind of handing over some of those tasks to other chief officers and he’s going to be taking over operations of some of these side businesses now a lot of people
Believe that was him trying to get out of the limelight because of the sex scandal and you may believe that you may not but i think it’s very interesting these side businesses in some ways are more interesting to me than just their traditional e-commerce business they have going on but anyway that is an update here on this earnings report now i want to go ahead
And talk about my main thoughts on jd comm after reading this report and why i’m going to be investing another five thousand dollars into this company number one my first thought here is that this is a growth beast trading at an all-time low and this is really something that i don’t understand with people who invest in the stock market you know jd is a stock that
Used to trade 40 50 dollars a share and there were people buying the stock left and right now 30 to 50 dollars a share and i don’t understand why you wouldn’t buy it at 20 if you bought it at 30 or 50 if you thought it was a good deal at $30 a share of $40 a share or even $50 a share why would it not be a good deal at $20 a share when you can get more than two shares
Per one share you could have purchased originally i know what psychology related people are afraid to buy stocks when they’re trading at a low share price they’re afraid to buy stocks and see them go down in the short term but it’s just something i personally don’t understand the amount of growth this company has experienced in the last four years a publicly traded
Company and for it to be now trading at an all-time low in my opinion it is an unbelievable opportunity but a lot of people disagree with me on that they disagree with me on ge and facebook as well but what it comes down to is this is a stock that i personally see value in and you may not see value when i’m just here merely sharing my opinion number two my second
Thought is that trade war fears and the slowing chinese economy fears are overblown i think it’s causing a lot of stocks to be stuck kind of in a zone where they’re not being able to break out of it simply because of the uncertainty of the chinese economy but personally i’m happy to see this as an investor because i think there are a large number of opportunities
Thanks to this fear right now going on within the market number three i think the brand relationships that jd is establishing with chinese retailers is going to boost the credibility of the platform and really make it the go-to platform for e-commerce much like amazon is the go-to platform here in the united states a very trusted trustworthy company number four
I think the retail as a service business segment has huge potential both online and offline and that is one of the most exciting businesses they’re involved with or ventures 4jd in my opinion number five i feel jd logistics separates them from amazon and alibaba i think it’s super interesting and i’m glad to hear they are leveraging their massive logistics network
And it’s going to be another revenue stream for them and then number six i think the innovative retail technologies in the largest e-commerce market makes this a very interesting company to buy the chinese e-commerce market is significantly larger than the united states ecommerce market and being able to get involved in one of the most innovative retail technology
Companies and e-commerce companies at this valuation seems to be a no-brainer in my opinion but anyways guys those are my thoughts and feelings on jd comm at this point in time like i said i plan on adding another five thousand dollars to my jd comstock position if i do decide to do that i will absolutely do an update video and let you guys know about that but
That’s gonna wrap up this video i hope you guys enjoyed it remember if you want to grab that completely free stock that’s going to be the top link in the description below but let me know in the comments action below what you guys think are you buying jvcom are you selling it what are your thoughts and feelings on this stock i would love to hear what you guys think
But thank you so much for watching this video and i will see you in the next one apologize on my pronunciation here dada jd doja in da jie
Transcribed from video
JD.com Q3 EARNINGS CRASH! 🔥 (Is JD.com A Buy?) By Ryan Scribner
