China Internet Giant JD.com Dives After Mixed Q1 Earnings

By | May 9, 2016

Scalper1 News

JD.com ( JD ), one of China’s four biggest Internet companies, posted mixed Q1 earnings early Monday and gave an outlook slightly short of views. Its shares were among the many U.S.-traded techs falling after Chinese markets retreated overnight on renewed concerns about that nation’s economic recovery. JD, China’s largest online direct sales company, similar to Amazon.com ( AMZN ), reported revenue of $8.4 billion, slightly above the consensus of $8.35 billion and up 48% in local currency year over year. Its revenue has grown at double- or triple-digit rates for more than 18 quarters. The company recorded a per-share loss of 2 cents minus items, matching the consensus estimate of analysts polled by Thomson Reuters. Its Q2 revenue guidance of $9.8 billion to $10.1 billion was slightly below the consensus of $10 billion at the midpoint. IBD Take: JD.com ranks just No. 17 in its group. IBD Stock Checkup can help explain why. JD stock was down 8.5%, near 23, in morning trading in the stock market today , but U.S. shares of Alibaba ( BABA ) and  Tencent Holdings ( TCEHY ) were flat. Baidu ( BIDU ) stock was down 3%, near 168, Monday morning after it announced new measures  in response to a student’s death and a government probe into its health care advertising Alibaba, Tencent and Baidu are China’s largest Internet companies, along with JD. Alibaba is China’s largest etail company, while Baidu is China’s largest search company, and Tencent leads in gaming and social networking. JD said its gross merchandise volume, which is the total value of goods sold on its website, rose 55% in local currency to the equivalent of $20 billion. “We had a solid first quarter of the year with healthy growth in revenues, new users and mobile traffic,” said JD CEO Richard Liu said in the company’s earnings release. Alibaba turned in a quarterly earnings report Thursday that largely eased concerns of slowing performance, despite a sluggish Chinese economy. Scalper1 News

Scalper1 News