JD.Com - Buy Opportunity
JD.com and Google announced a comprehensive partnership following an equity injection exercise with cash from the latter.
Link: https://www.google.com/amp/s/www.cnbc.com/amp/2018/06/18/google-to-invest-550-million-into-chinas-jd-com.html
President Trump reignited the trade kerfuffle with China and the resultant stock market swoon dragged JD down to below its closing price before the announcement.
The partnership with Google is a reflection of a broader alliance Google has been establishing in its fight against Amazon.
JD's strong showing at this year's 618 shopping festival bodes well for its revenue growth delivery.
For those waiting to get vested in this top retailer in China or add to an existing position, the sell-down has certainly opened up an opportunity.
As part of a strategic partnership, Google will put $550 million in cash into JD.com, the companies said in a statement. In return, Google will receive more than 27 million newly issued JD.com Class A ordinary shares at an issue price of $20.29 per share.
That's equivalent to $40.58 per American depository share based on the volume-weighted average trading price over the prior 10 trading days.
Buying JD.Com at today's price of below $40 means that your entry price is lower than Google's.
Link: https://www.google.com/amp/s/www.cnbc.com/amp/2018/06/18/google-to-invest-550-million-into-chinas-jd-com.html
President Trump reignited the trade kerfuffle with China and the resultant stock market swoon dragged JD down to below its closing price before the announcement.
The partnership with Google is a reflection of a broader alliance Google has been establishing in its fight against Amazon.
JD's strong showing at this year's 618 shopping festival bodes well for its revenue growth delivery.
For those waiting to get vested in this top retailer in China or add to an existing position, the sell-down has certainly opened up an opportunity.
As part of a strategic partnership, Google will put $550 million in cash into JD.com, the companies said in a statement. In return, Google will receive more than 27 million newly issued JD.com Class A ordinary shares at an issue price of $20.29 per share.
That's equivalent to $40.58 per American depository share based on the volume-weighted average trading price over the prior 10 trading days.
Buying JD.Com at today's price of below $40 means that your entry price is lower than Google's.
Comments
Post a Comment