JD.com is the largest overall and internet retailer in China, as well as being the largest internet company based on revenues. The JD.com stocks (NASDAQ: JD) debuted in 2014, and have been quite volatile, making it a good target for short-term stock trading.
The company was founded in 1998 in Beijing by CEO, Richard Quiangdong Liu, however the website didn’t launch until 2004 as Jingdong.com. It later rebranded to 360buy.com in June 2007, and finally settled on JD.com in 2013. The domain name is rumoured to have cost the company $5 million.
The JD.com Brand
In China JD.com has set customer expectations high by committing itself to authenticity and quality, while also expanding to offer everything from electronics to apparel, cosmetics to fresh foods. While Amazon is struggling in the U.S. to provide next-day delivery JD.com has been providing same-day and next-day delivery to a population of over 1 billion in China.
JD.com has set themselves apart as a brand guaranteeing quality to customers. In a country that is plagued by counterfeits JD.com has a zero-tolerance attitude towards counterfeits.
The company has adopted a business model that sees it controlling the entire supply chain. It limits the sellers it admits to its marketplace, allowing it to maintain its strict oversight on quality and authenticity.
Global brands looking to reach the Chinese consumer unfailing choose JD.com as their partner of choice. To attract the strongest brands JD.com offers a full suite of services, including warehousing, logistics, analytics, consumer targeting marketing, and even financing.
JD.com is much more than just a retailer. As a technology driven enterprise it is known for building platforms that are both reliable and scalable. These platforms help bring value to partners and customers in such diverse sectors as cloud computing, internet finance, smart technologies, logistics, and e-commerce.
JD.com also leads in high tech delivery systems. It is investing in technology related to artificial intelligence delivery systems, including robots, autonomous technology, and drones. Its drone delivery system and infrastructure is the largest in the world. Robotic delivery has been tested recently, as has driverless deliveries using an autonomous truck, and the company is constructing drone delivery airports,
Even though JD.com is a Chinese company, it chose to list its shares on the Nasdaq in the U.S. The company held its IPO on May 22, 2014, raising $1.78 billion at an IPO price of $19.00 a share. At the time it was the largest IPO ever, eclipsing Visa, Facebook, and Google. It would later be eclipsed itself by Alibaba, another Chinese ecommerce company choosing to list in the U.S.
Shares rose 15% in the initial day of trading, giving some indication of the optimism from investors. At the time JD.com had a market capitalization of $26 billion. Shares reached a high of $33.10 in August 2014, and then retreated to end the year near $22 a share.
By mid-2015 shares were above $35, but that rally didn’t last either, and by June 2016 JD.com stocks were back under $20 a share.
It was from there that JD.com stocks saw the strongest rally. Shares rose from the June 2016 low of $19.51, gaining momentum and dipping just the summer of 2017 before reaching an all-time high of $50.68 in January 2018.
Unfortunately it turned out to be a round trip for the stock as it fell off that all-time high and settled at $19.26 in December 2018.
2019 was a good year for JD.com stocks, with shares rising in choppy trade and gaining an impressive more than 85%, easily outpacing the gains of the underlying Nasdaq index.
Heading into 2020 more gains are expected as analysts see JD.com growing at a 28% pace. Of course JD.com earnings and stock price is volatile, so the gains aren’t likely to be in anything like a straight line.
JD.com Trading Ideas
Unlike some other stocks, JD.com shares are not a good candidate for following analyst recommendations. The stock is simply too volatile. So even though there are no sell recommendations from 47 analysts it doesn’t mean JD.com stocks can be blindly bought. Instead more thought needs to be put into the volatile and rewarding stock trade.
JD.com Technical Trading
Stock trading often depends on the technical analysis on price patterns, and this is the best course of action when trading JD.com stocks. Using moving averages, support and resistance levels, Fibonacci retracements, and other reliable technical indicators can make the difference between winning and losing trades. The stock also has a tendency to trade in channels, and if one is identified early multiple trades can be made off the highs and lows of the channel.
Trading on JD.com Earnings
Another chance for booking a good trade is to speculate on the earnings results from JD.com. This can be quit risky however, as we never know for sure ahead of time what a company’s earnings report will bring. That aside, if there’s a reason to believe earnings will be stronger than forecast a buy before the earnings release can yield excellent results. JD.com’s stock has a tendency to overreact to positive news, making this strategy stronger than it might be with other stocks.
As one of the largest IPO’s at the time JD.com stocks have presented investors with plenty of opportunity. The stock tends to be volatile, with large swings in price not unusual. That makes it a great choice to trade at AvaTrade through the Metatrader 5 platform. The newly released MT5 at AvaTrade allows users to analyze JD.com stocks and hundreds of other equities using 38 different trend indicators on PC, iOS or Android phones and tablets, as well as directly on the web.
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Don’t miss out next time JD.com shares rally. Open an account at AvaTrade today and be ready to take advantage when opportunities present themselves.
AvaTrade JD.COM Stock Trading Information
- JD.COM Stock Symbol: #JD.COM
- Trading Times: Monday – Friday 14:30 – 20:59 GMT
- Country: USA
- Currency: USD
- Exchange: NASDAQ
- Leverage up to:
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