scroll

JD.com (JD US) and Alibaba (BABA US)

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 02/08/2025

JD.com (JD US) and Alibaba (BABA US)

Hi James/Shawn can I please have your updated view on JD.com and Alibaba. Do you still believe JD is cheap? Is it fair to assume that of the 2 you are more bullish Baba with a 6% weighting vs JD which has a 4% position in your international portfolio. Both their share price has gone nowhere in last 6 months. It feels like I’m forever waiting for more stimulus to come out of China to get these stocks moving. Why else do you think these businesses are so out of favor as opposed to US Tech?

Answer

Hi Terry,

We feel your frustration in terms of stimulus out of Beijing although the miners did show glimmers of hope through July.

Alibaba (BABA US) and JD.Com (JD US) are both major Chinese e-commerce giants, but their business models differ significantly. Alibaba is a marketplace-driven, asset-light platform akin to eBay or Amazon Marketplace, while JD.com is more like a traditional retailer (like Amazon itself), controlling its supply chain and logistics directly.

Of the two we do have a preference to BABA although as you said both have trodden water through most of 2025.

We still believe they are cheap and the Chinese economy has reached its nadir, BABA is trading on 13.8x for FY26, and JD 10.7x for CY25 whereas US peer Amazon is trading on 37.1x for CY25. We believe the valuation differential will narrow over time, and remain optimistic on both.

chart

Alibaba Group (BABA US)

LAST UPDATED 01/08/2025 13:42

Latest Reports

Weekend report 23/08/2025

Weekend Q&A: The Bull ASX200 cracks 9000 as volatility erupts on the stock level

The ASX200 fell away on Friday to close down 0.6%, with the heavyweight miners and banks largely reversing early gains to close lower. The index still managed to end the week up +0.3%, but it failed to hold above the psychological 9000 level, with healthcare, and especially CSL, weighing heavily. The week, as expected, was dominated by the reporting season, with “misses” treated a touch more severely than beats were embraced. However, that’s no major surprise with the index posting all-time highs as often as it rains in Sydney!

Afternoon report 22/08/2025

The Match Out: Reporting knocks stocks from all-time highs

The market tapered off as the day progressed with the ASX giving back half of yesterday's strong move – as reporting season roles on. More misses than hits today with some big moves playing out as a consequence.