2023-05-18 15:17:36 ET
- JD.com ( NASDAQ: JD ) was added as a new long idea at Hedgeye, while recommending a pair trade to short Kuaishou Technology ( OTCPK:KUASF ).
- "We are recommending the pair trade because we are not fully comfortable with e-commerce this year," Hedgeye analyst Felix Wang wrote in a note on Thursday. "We believe investors are too optimistic on Kuaishou and too pessimistic on JD.com."
- Kuaishou, the largest live stream platform and second largest short video platform in China, was once one of China's hottest Internet stocks, but not is fading amid competition, according to Hedgeye.
- Among the big 3 in China, Alibaba ( BABA ), JD ( JD ) and PDD Holdings ( PDD ), revenue expectations for JD are the lowest by a wide margin, according to Hedgeye.
- "JD has the highest upside," Wang wrote. "A lot of growth & margin deceleration concerns on JD are priced in."
- JD.com ( JD ) last Thursday report Q1 results that handily topped expectations and unveiled management changes.
For further details see:
JD.com a new long at Hedgeye, pair trade with short Kuaishou Technology