Amazon's Chinese Rival Is Seeing Cracks In Its Momentous Streak: Growth Score Drops

Amazon.com, Inc. -0.38% Post
JD.com, Inc. Sponsored ADR Class A -1.42% Post

Amazon.com, Inc.

AMZN

209.77

209.77

-0.38%

0.00% Post

JD.com, Inc. Sponsored ADR Class A

JD

28.46

28.53

-1.42%

+0.26% Post

A prominent Chinese e-commerce company with global ambitions, which is now trying to mirror Amazon.com Inc.’s (NASDAQ:AMZN) global ambitions, is seeing cracks and headwinds against its monumental growth streak over the past several years.

The stock in question is JD.com Inc. (NASDAQ:JD), which has seen its Growth score in Benzinga’s Edge Stock Rankings slip over the past week, despite posting strong recent quarterly performances, which even beat analyst consensus estimates.

JD Sees Growth Score Dip

The Growth score in Benzinga’s Edge Rankings is calculated based on a company’s historic growth profile and includes the pace of earnings and revenue growth over the years. It gives equal importance to both short and long-term trends, before ranking each stock as a percentile relative to others.

Beijing-based JD.com has seen its Growth score drop from 54 to 39.59 within the span of a week, primarily owing to the deceleration in its pace of growth in recent quarters.

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The company reported 14.9% year-over-year growth in revenue during its recent third-quarter results, which, despite being ahead of consensus estimates, fell short of its historic growth rates.

Additionally, the company’s EBITDA dropped 83.6% year-over-year to $346 million, with margins at 0.8%, down from 5.8% a year ago, amid growing marketing expenses, as the company contends with rising competitive headwinds in the Chinese domestic market.

The stock does poorly on Momentum and Growth in Benzinga’s Edge Stock Rankings, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.

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