3 Ways JD.com Is Beating Amazon
Shares of JD.com (NASDAQ: JD) have been on a tear in 2020 as China's No. 1 direct online seller is up 42% year to date. As a Chinese company, JD escaped the sell-off that racked the U.S. stock market in March, and its gains have accelerated in recent weeks as the region's economy appears to be getting back on its feet and after the company turned in a strong first-quarter earnings report in spite of the pandemic.
JD is often compared to Amazon (NASDAQ: AMZN) and thought of as the Amazon of China. While there's no perfect analog for the two companies, and Amazon is unique in a number of ways, JD does have a number of things in common with the American e-commerce giant. JD is not only the No. 1 direct online seller in China but also operates its own logistics and delivery network that carries packages for other sellers as well. The company has branched out into areas like healthcare and operates as both a direct seller and as a marketplace operator.
The company is significantly smaller than Amazon with 2019 revenue of $83.5 billion compared to $280.5 billion for Amazon, and its market cap is just 6% of Amazon's at $73 billion. Though Amazon is worth more than 16 times what JD is, the Chinese e-commerce operator is well ahead of Amazon in some key areas.
Source Fool.com
