JD.com Is Still Undervalued, Despite What the Bears Say

JD.com (NASDAQ: JD), the largest direct retailer in China, recently posted its fourth-quarter earnings. Its revenue rose 31% year over year to 224.3 billion yuan ($34.4 billion), beating analysts' estimates by $710 million.

Its non-GAAP net income surged 194% to 2.4 billion yuan ($0.4 billion), or $0.23 per American depositary share (ADS), which exceeded analysts' expectations by $0.05 a share. On a GAAP basis, which includes some big gains from its investment portfolio, its net income soared 575% to 24.3 billion yuan ($3.7 billion).

JD's headline numbers were impressive, but its shares barely rose after the report. The bears will likely claim a lot of growth was already baked into the stock, which more than doubled in value over the past 12 months, but I believe it's still undervalued and has plenty of room to run.

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Source Fool.com