10 Best Internet Retail Stocks to Buy Now

7. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 59

JD.com, Inc. (NASDAQ:JD) is a leading e-commerce company primarily focused on online retail and marketplace operations in China. It operates through four main platforms including JD Retail, JD Logistics, and New Businesses.

JD Retail is the largest segment, accounting for nearly 90% of the company’s net revenue, and focuses on direct online retail and marketplace services across a wide range of products. On the other hand, the JD Logistics segment has developed a comprehensive infrastructure, including warehouses and delivery networks, which enhances the efficiency of product delivery.

The company like any other e-commerce company generates its revenue from direct sales, marketplace commission, logistics services, and other value-added services. The competitive edge of JD.com, Inc. (NASDAQ:JD) lies in its ability to drive strong revenue growth. As per the company’s statistics, the company has grown its net revenue at a compound annual growth rate of 19% from 2018 to 2023.

Moreover, during the second quarter of fiscal 2024, the company crossed $4 billion in revenue. Its second-quarter revenue came in at 291.4 billion RMB, which is approximately $4.1 billion. During the quarter the revenue grew by 1.2% year-over-year, driven by a robust performance in the logistics segment, which improved 8% during the same time.

Management has expanded its reach outside China as well. On November 1st the company announced expanding its services to Malaysia and Thailand. This move is expected to improve the sales for the retail segment which is the major segment of the company but only grew 1% year-over-year during the second quarter.

JD.com, Inc. (NASDAQ:JD) is one of the best internet retail stocks to buy now and was held by 59 hedge funds in Q2 2024, as per Insider Monkey’s database.

Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its first quarter 2024 investor letter:

“We initiated a position in China-based technology-driven E-commerce company, JD.com, Inc. (NASDAQ:JD). The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth and margin expansion on a go-forward basis.”