Investors are encouraged to buy Chinese e-commerce stocks Alibaba Group Holding Limited and JD.com, Inc.

From Barchart: 2024-07-29 15:40:51

China’s e-commerce market is anticipated to see robust growth in 2024, driven by a recovering economy, increased consumption, and technological advancements. Mobile shopping and digital payments will spearhead this growth, alongside trends like augmented reality and social commerce.

Amidst this optimistic outlook, investors may want to consider adding fundamentally strong Chinese e-commerce stocks like Alibaba Group Holding Limited (BABA) and JD.com, Inc. (JD) to their portfolios for potential gains.

China’s Q2 2024 economy grew by 4.7%, falling short of expectations due to a property downturn and weak consumer spending. However, infrastructure investments and high-tech manufacturing are promising, with exports projected to rise by 4.3%, suggesting overall economic growth of 5%. This slower consumer spending does not dampen the investment outlook.

Online retail sales in China surged by 9.8% to RMB 7.1 trillion ($979.25 billion) in H1 2024, fueled by AI and technological investments, and digital products. E-commerce revenue is forecasted to hit $1.47 trillion this year, with an annual growth rate of 9.95%, reaching $2.36 trillion by 2029.

Alibaba Group Holding Limited (BABA), based in Hangzhou, China, provides technology infrastructure and marketing services for businesses globally. It operates through various segments like China Commerce, Cloud, and Innovation Initiatives, serving millions of merchants and boosting operational efficiency with its AI tools.

BABA reported a 6.6% increase in revenue for Q4 ending March 31, 2024, reaching RMB221.87 billion ($30.60 billion). Its AI toolkit for merchants, “Aidge,” has enhanced over 100 million product listings and seen robust adoption. Analysts project a 5.2% rise in revenue for the quarter ended June 30, 2024, and anticipate solid EPS growth.

JD.com, Inc. (JD), headquartered in Beijing, offers technology and supply chain services in China. Its Q1 fiscal report showed a 7% increase in net revenues to RMB260.05 billion ($35.87 billion) and a 12.7% growth in income from operations. Analysts expect a 14.7% rise in EPS for the quarter ended June 30, 2024, and affirm its strong performance.

Both BABA and JD have favorable POWR Ratings signifying a buy opportunity, with BABA having an overall B rating and JD boasting an A grade for Growth. Consider investing in these robust Chinese e-commerce stocks for potential gains.



Read more at Barchart: Why These 2 Chinese E-Commerce Stocks Are a Must-Buy?