When JD.com (NASDAQ:JD) reported quarterly earnings, the stock continued its uptrend and closed at new highs. The online retailer has too big a presence and too strong a supply chain logistics system to ignore.
JD.com reported 28 cents a share in earnings. Revenue grew by a solid 20.7% Y/Y to $20.6 billion. Mobile monthly daily active users jumped by 46% Y/Y. Its guidance suggests that growth will re-accelerate.
JD.com has a moat in logistics and strong customer growth. This is a good long term buy and hold.
Alibaba’s (NYSE:BABA) earnings report this week should easily surpass investor expectations. The online retailer has a strong site and mobile app that benefited from the COVID-19 lockdown in China.
After China reopened, Alibaba will become an even stronger player in the region. Its cloud solution, which is similar to Amazon.com’s AWS, should grow at a quick pace, too. Investors might bet on BABA stock revisiting yearly highs not seen since January 2020.
If BABA stock trades the other way despite a strong earnings report, investors have another chance to accumulate a well-managed e-commerce giant.
Risky stocks that investors should exercise caution on include Momo (NASDAQ:MOMO) and iQiyi (NASDAQ:IQ). The stocks are volatile and might attract buyers, but the momentum is often short-lived.
