How To Buy JD.com Stocks Now – Price, Forecast and Dividend
Valued at more than $120 billion as of Sept 2021, JD.com - also known as Jingdong - is currently the largest eCommerce company in China by revenue. Rivalled by the more popular Alibaba, JD.com leads the way in sales of fresh foods, apparel, books, consumer electronics, and lots of other items that the firm stores in its warehouses and transports through its nationwide, homegrown logistic network. Today, the company also brandishes its high-tech delivery system made up of robots, Artificial Intelligence, and a fleet of drones.
With that in mind, today’s guide will extensively examine everything there is to learn about JD.com shares, and the reasons behind the company’s success. By the end, you should be in a position to make a well-informed decision in regards how you should invest in JD.com stock.
JD.com’s billionaire chairman and founder, Richard Liu, also known as Liu Qiangdong, started the company in 1998, using a market stall in Beijing to sell computer parts. By 2003 when the SARS outbreak struck China, Liu had already built a chain of 12 stores across the city. After the outbreak, however, he was forced to close all the stores and transition to selling his computer parts online instead. After the epidemic subsided shortly thereafter, he decided to stay online and launched a consumer retail site in 2004.
Today, JD.com has more than 387 million active clients. In addition, American multinational retail corporation Walmart owns a roughly 10 percent stake, and Chinese tech conglomerate Tencent Holdings owns an 18 percent stake. In regards to what the company sells, it currently sells everything from Prada handbags to baby formula. It also offers JD Luxury Express, a luxury delivery service where gloved gentlemen in suits deliver the most high-end products to customers’ doors. The company is also a grocer.
Today, JD.com delivers goods to customers and controls most of its supply chain operations from its 730 storage units, promising next and same-day deliveries with the help of an extensive network of delivery drones and tens of thousands of drivers. Alibaba, by comparison, primarily functions as a payment service and platform for 3rd party sellers and earns most of its revenue from advertising products. That said, just like Alibaba, JD.com has been trying to expand beyond its online retail operations and into B-to-B business services, such as cloud computing and logistics.
JD.com Stock History and Price
The company held its Initial public offering (IPO) on New York’s NASDAQ on May 22, 2014, at a price of $25 per JD.com share. After the IPO, the JD.com stock became the first stock from a Chinese eCommerce company to list on the NASDAQ stock exchange.
Approximately seven years later, on February 15, 2021, the JD.com stock price history hit an all-time high (up to that time) of $106. That’s a growth of around 420 percent. After that, though, the company’s stock dipped a little bit, thanks to the heavy-handed regulations by Chinese government authorities. This move by the Chinese government affected all other large internet companies in the country as well.
Why Invest in JD.com Shares? Points to consider
Before you make a final decision to invest in a specific stock, there are lots of factors you should consider, and it's no different for JD. After all, when you buy JD.com stock, you’re practically buying into the company. You are buying both their liabilities and assets. Therefore, it's essential to properly consider and research into the company before making the final move. This section of the guide will look at JD.com forecasts and the company’s fundamentals.
1 - JD.com business model and share price
Over the years the company has been operational, it has grown to become the Nation’s leading online retailer, thanks to its ability to simplify shopping experiences for all customers. Customers on JD.com can easily access a wide array of consumer products because the company has been expanding its offerings through partnerships with international brands.
JD.com has also been able to simplify checkout processes for its customers by offering them a wide array of payment methods, including but not limited to cash on delivery. The variety of payment methods has also allowed customers to close their transactions faster, which has, in turn, encouraged most shoppers on the site to buy more.
Another thing worth noting is the fact that JD.com renders credit support to its customers. For example, the firm has partnered with ZestFinance to award its shoppers access to microcredits. This not only encourages customers to keep spending on the retail platform, but it also gives most of them a reason to keep returning.
The company’s business operations have been expanding and now include strategic partnerships with China based Tencent Holdings, Google-owned Alphabet, and Walmart.
Walmart and JD.com established a relationship in 2016, and the American retail corporation owns a 9.8 percent stake in the firm. Also worth noting is that Walmart’s collaboration with JD.com includes agreements to establish a Walmart China flagship store and Sam’s Club flagship store on JD.com’s site. Both firms have leveraged each other’s supply chain to boost product selection for shoppers all across China, and they have also partnered on delivery services.
The partnership with Tencent boasts several moving parts. Tencent owns approximately 20 percent of JD.com’s stock, and JD.com has access to Tencent’s extremely popular mobile payment and messaging service called WeChat. The partnership is intended to drive more users to JD.com. Both companies are also in a strategic partnership with a leading operator, owner, and developer of commercial properties in China, known as Dalian Wanda Commercial Properties.
2 - JD.com stock dividend information
Only investing in dividend-paying firms (most preferably those that have been shown to increase their payouts year after year) is one of the few tried and tested strategies to weather all kinds of economic storms in the investment realm. Consistently receiving cash payments every quarter should help alleviate any losses incurred due to stock price’s day-to-day fluctuations.
That said, JD.com does not currently pay a dividend, and once it starts, we will ensure to update this guide with the payouts history and info.
Do not let this trick you into thinking that the company isn’t worth your hard-earned cash, though. Actually, quite the opposite. Firms like JD.com that do not pay dividends on stocks typically reinvest the cash they would have otherwise given as dividend payments back into the overall growth and expansion of the company. This implies that, over a period of time, you should see the JD.com stock prices appreciating.
Also, note that most companies that do not offer dividends also invest a portion of the cash into something called “share buyback” in the open market. As expected, if fewer shares are available in the market, then a company’s EPS (earnings per share) should (theoretically) rise.
3 - JD.com stock forecast prediction
According to data provided by S&P Global Market Intelligence, JD.com stock price rose approximately 10.8 percent over the last month. As noted earlier, the JD.com share price had been dropping over the last few months, thanks to China’s regulation authorities ramping up scrutiny over antitrust issues. However, JD.com was able to deliver second-quarter results that matched exactly what was needed to restore investors’ confidence in the company’s future and the JD.com stock forecast.
The second quarter’s revenue rose to $139B, and what was even more encouraging was the stability of 2.6 percent within JD.com Retail’s operating margin. All these improvements can be attributed to efficient operations and the supply chain. The JD.com management also has faith that these margin levels can even get better with time and fuel more gains for traders and investors over time.
What’s more? Over the previously reported quarter, JD.com also saw a record customer addition of 32 million new shoppers. On this, JD.com’s management noted that the new users were also showing improved shopping frequency and retention rate, which is promising as investors brace for post-pandemic growth. The average revenue per user also saw an uptick, contributing to growth in the customer base’s lifetime value.
Where to Buy JD.com Stock
If you feel confident about JD.com’s future and are ready to invest in the company, then all you ought to do is start by creating an account with ZFX. Let’s take a look at the broker in more detail.
ZFX, Best for Advanced Traders Looking For a Superior Trading Experience
ZFX (Zeal Capital Market) is an online retail trading broker headquartered in the city of London. Among many benefits, it provides its traders with the right conditions and resources required to succeed in several financial markets, including cryptocurrencies, indices, commodities, and forex.
Traders registered with ZFX are also provided with multilingual customer support as well as a wide array of trading and learning tools. Other essential features on ZFX include leverage of up to 1:100, competitive commissions, low spreads, and deep liquidity.
How to buy JD.com stock now
Before registering with ZFX, note that trades on the platform are executed with the MT4 platform, which is available for mobile devices, web, and desktops. If you’d like to go on and invest in JD.com’s stock using ZFX, here is a summary of the steps you’ll need to take;
- Register with ZFX
- Verify your ZFX account
- Make your first deposit
- Buy JD.com
Let’s take a look at all of these steps in more detail.
Step 1: Register with ZFX
Start by accessing ZFX’s homepage. Then, hit the blue icon on the top labeled “Open an account.” On the new page displayed, type in all the required info. This includes your name, mobile number, email address, verification code sent to your phone, and your password. After typing in all the needed information, hit the “Next” button.
On the next page, select the account type you’d prefer and tick the ZFX’s terms and agreements box. Then click on “Sign Up Now” at the bottom. ZFX allows you to access three different types of accounts, namely ECN Account, Standard STP Account, and Mini Account.
Step 2: Make your first deposit
On the page that displays next, ensure you take note of your MT4 login code and password. Then, click the “Make a Deposit“ button on the bottom right side. You can now proceed with funding your account.
Step 3: Account Verification
Before you can start trading on ZFX, you’ll need to submit your documents for verification. To submit, find the area labeled “Personal Information” from your profile dashboard, and click it. From the dropdown that shows up, click Document Verification, and you’ll be led to a page like the one above.
After submitting your documents, it only takes ZFX one working day to complete the verification.
Step 4: Buy JD.com Stock
After completing all the steps above, click the “Download MT4” button. Then, install it to your computer. Subsequently, log in using the details you saved earlier, and start investing in the JD.com stock whenever you want. The JD.com stock symbol is labeled JD.
Bottom Line: Should I Buy JD.com Stock?
All in all, there are many reasons to motivate buying JD.com stocks this year. As the Chinese government seems to wind down its antitrust probe into all Chinese tech companies, that’s great news for anyone who’d like to invest in JD.com. Couple that with the fact that the company has consistently reported better-than-expected results over the last couple of years, and you’ll see why the JD.com stock is a must-buy.