Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD), the two largest e-commerce companies in China, both recently posted earnings reports that dazzled investors.
Alibaba's revenue rose 34% annually in its latest quarter, and its adjusted earnings grew 18%. JD's revenue also rose 34% as its adjusted earnings soared 53%. Both companies shattered analysts' expectations on the top and bottom lines, and both stocks now trade near their all-time highs.
I compared these two stocks last December, and I declared that JD's lower valuation and improving fundamentals made it a better buy than Alibaba. JD's stock rallied over 125% since I wrote that article, while Alibaba's stock advanced just 30%. Let's examine the reasons JD outperformed Alibaba, and whether that trend will continue throughout the rest of 2020.
Source Fool.com