Key News
Asian equities were mixed overnight on lower volumes as growth stocks outperformed value.
E-Commerce company JD.com beat analyst expectations in its Q4 results, reported overnight. While JD’s percentage increases year-over-year (YoY) are not large, the key was management’s statement that Q2 gross merchandise value (GMV) is rising faster than in Q1. This is due to China’s consumers coming back online slowly as confidence is rebuilt following the repeal of China’s zero COVID policy. JD.com is focused on electronics and big-ticket items, which have come back slower than luxury goods, restaurants, hotels, and other services. Management did a good job keeping costs down, which led to a pop in profitability. JD’s CEO Xu Lei will leave the company for “personal reasons” after a little more than a year on the job though he spent a decade with JD. The new CEO Sandy Xu served as JD’s CFO after two decades with PWC.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.