A positive trend in the market helped JD.Com Inc (ADR)(NASDAQ:JD) touch newer heights lately. As per the reports, most of the e-commerce stocks of Chinese companies surged in United States amidst of speculations that the condition for online sales would improve in the country. As soon as this speculations spread around, most of the Chinese e-commerce stocks advanced.
Road So Far:
The American Depository Receipt or ADR increased by 1.6% and touched $35.28 level and pushed the rally to 86% for the first time since JD.Com’s debut in the U.S. stock market. One other company that increased by this positive outlook in the market was promising online Fashion retailer Vipshop Holdings. It surged 3% and touched $29.81 mark. While most of the e-commerce companies continues positive growth, China Cord Blood Corp. decreased highest in the past three weeks after receiving an offer to go private. The overall growth in Bloomberg China-US Equity Index was seen as 1.1%.
JD.Com Inc (ADR)(NASDAQ:JD) is the second largest e-commerce company in China after Alibaba. It had a dream run on Monday when its buy ratings increased to 19; an all time high record. It happened after JPMorgan Chase & Co. decided to give it coverage and set a price target 21% higher than Friday’s closing price. The total number of customers of JD.com has surpassed 649 million mark, more than double of U.S. population. According to government data, this number is all set to surpass 850 million user base by the end of 2015.
According to Ella Ji, Senior Analyst, Oppenheimer & Co, e-commerce is the fastest growing segment in Chinese internet segment, and investors are on their toes to put money and make huge returns. The fast-growing user base of JD.com will surely help it getting an edge over other rivals in the near future.