JD.Com Inc(ADR)(NASDAQ: JD) has reported the adjusted loss per share of $0.40 in the fourth quarter 2016, beating the analysts’ estimates for the adjusted loss per share of $0.41. The company had reported the adjusted revenue growth of 47 percent to $80253.60 million in the fourth quarter 2016, beating the analysts’ estimates for revenue of $76301.52 million. Hence, the stock rose over 2.2% in the pre-market session on March 2nd, 2017 (Source: Google finance).
GMV for the fourth quarter of 2016 increased by 46% to RMB209.7 billion (US$30.2 billion) from the core GMV (excluding Paipai.com) of RMB143.2 billion in the fourth quarter of 2015. GMV excluding virtual items for the fourth quarter of 2016 has totaled RMB206.2 billion (US$29.7 billion), which is an increase of 50% from the fourth quarter of 2015.
Further, the fulfilled orders excluding virtual items in the fourth quarter of 2016 grew 43 percent to 505.7 million. This is an increase from 353.1 million orders fulfilled for the core business excluding virtual items in the same period in 2015. The fulfilled orders placed through mobile accounted for approximately 80% of total orders fulfilled in the fourth quarter of 2016, which is an increase of more than 70% compared to the same period in 2015.
Moreover, the annual active customer accounts have increased by 46% to 226.6 million in the twelve months ended December 31, 2016, from 155.0 million in 2015, excluding unique customers from Paipai.com.
JD Finance has spun off from JD.com for three and a half months, will now complete privatization, that is estimated to be worth CNY 50 billion. JD Finance is expected to foray into securities, credit investigation, banking and insurance service, getting licenses through independent application or equity investment. Meanwhile, as per Chinese online media outlet Yicai, JD Finance was raising an unknown sum of funds, which would value the fin-tech company at 50 billion yuan and would pave its way to the country’s A-share market.
JD.Com is focusing on developing industry-leading technologies including AI and big data will help further transform the current business through improved efficiency and better user experience. In December 2016, JD has added voice shopping functionality to DingDong A1, the flagship version of its voice-enabled smart speaker. The company has also entered into a two-year strategic partnership with global spirits leader Remy Cointreau Group, which will enable JD.com to source products directly from the brand for its direct sales platform.
JD.Com stock has risen 20.7% in the last one year (source: Google Finance). However, JD has an average price target of $31.38, which is a further limited upside of 2.31%.