JD.com (JD) Soars After Adding Record Users in Q2, Goldman's New PT Implies a Near 100% Upside; Cathie Wood Increases its Stake
Shares of JD.com (NASDAQ: JD) are up nearly 9% in pre-open Tuesday after the company reported its financial results for the second quarter.
The company reported better-than-expected results with Q2 EPS coming in at RMB2.90 to top the analyst estimate of RMB2.35. Revenue for the quarter came in at RMB253.8 billion versus the consensus estimate of RMB249.7 billion.
In spite of the regulatory crackdown on China-based tech firms, JD reported a record 32 million users over the quarter.
The company reported its Q2 results just a day after Cathie Wood’s Ark Investment Management bought 164,889 of JD.com’s American depository receipts (ADRs).
Following Q2 earnings, Goldman Sachs analyst Ronald Keung lowered the price target to $125.00 per share, which is still a Street-high after a “solid top line beat.”
“JD.com (JD) reported solid top line beat, better-than-expected net margins and guided for sustained growth into 3Q driven by strong user growth/engagement with its unique 1P + 3P supply chain-driven retailer business model,” the analyst wrote in a client note.
“We have a Buy rating (on CL) on JD/9618.HK given its leading retailer scale with a unique 1P online direct sales + marketplace model supplemented with its industry-leading in-house warehousing and supply chain capabilities.”
Morgan Stanley analyst Eddy Wang maintained an “Overweight” rating and a $78.00 per share price target on JD following “resilient” Q2 results.
“JD's 2Q21 results beat our and consensus estimates on both the top and bottom lines. Management noted a resilient consumption trend in July and August, and its increasing S&M spending should boost revenue growth and improve user engagement in 3Q21,” Wang stated in a memo.