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Alibaba Group and JD.com recorded their biggest merchandise sales ever on this year’s Singles Day.
For this year’s annual Singles’ Day, major Chinese e-commerce businesses extended the discount period from November 1 to November 11. Leading e-commerce businesses Alibaba Group Holding Ltd (NYSE: BABA) and JD.com Inc (NASDAQ: JD) recorded their biggest merchandise sales ever on this year’s Singles Day.
According to media outlet CNBC, Alibaba reported a gross merchandise value of $56.42 billion as of Wednesday. However, its stock plummeted 8.26% on Tuesday to close the day trading at $266.54. A similar case was observed in JD shares that dropped approximately 5.63% to end the day trading at $80.35. As of Wednesday, JD.com had recorded gross merchandise sales of 200 billion yuan since it began Singles’ Day.
Apparently, the dip was attributed to news that China clearly stipulated its anti-competitive regulations as its economy recovers from the coronavirus impact.
The competition in Chinese e-commerce businesses is on a record high, hence the need to protect smaller businesses from the established ones.
Notably, according to Jacob Cooke, CEO of WPIC, an e-commerce tech and marketing firm that helps foreign brands sell in China, it expects a double-figure in this year’s Singles Day. He also noted that it is a clear indication that consumer consumption habits have shifted to online shopping especially fueled by the ongoing coronavirus pandemic.
Alibaba and JD Stocks on Singles’ Day
At the height of the pandemic, Alibaba stocks rallied but have negated some of the profits in the past one month. According to metrics provided by MarketWatch, BABA stocks have jumped 46.07%, 25.67% and 4.45% in the past one year, eleven months and three months respectively. However, they have dropped 11.47% and 9.86% in the past month and five days respectively.
Alibaba has a market valuation of approximately $810.24 billion with 2.71 billion outstanding shares. Having been rated by 55 Wall Street analysts, Alibaba stocks received an average of a Buy rating.
On the other, JD stocks have rallied 138.55%, 127.31% and 30.89% in the past one year, eleven months and three months respectively. They have, however, dropped approximately 3% in the past month. The company has a market capitalization of $144 billion and 1.33 billion outstanding shares. Having been rated by 46 credible Wall Street analysts, JD stocks received an average of a Buy rating.
The success of China tech stocks is a clear testimony that the country is headed to recovery progress in the near future.
“Potential implementation of new antitrust regulations is negative for most major Internet companies, particularly in e- commerce and food delivery – although competition has already intensified with reduced market dominance across segments in recent years, which could be a mitigant,” highlighted Morgan Stanley analysts.