....The main reason JD is suffering from mitigated profit growth is because the company is investing big in order to expand its business. Namely, JD is aggressively expanding internationally, including a huge expansion into Europe. Clearly, the company isn't satisfied with dominating the China e-commerce market - it wants a piece of the global e-commerce pie, too.
That is a very smart move.....Beyond expanding its commerce business, JD is jumping head-first into logistics, artificial intelligence and the cloud. Each of these markets has huge multi-year growth potential. And JD has the scale, resources, infrastructure, and reach to make big splashes in each. Thus, today's big investments need to be taken in context with the big picture growth narrative. These big investments are ephemeral, and will inevitably lead to super-charged revenue and profit growth...."
https://www.nasdaq.com/article/...d-be-able-to-soar-above-50-cm995848 |