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JD Stock Continues to Surge on Results of the 6.18 Anniversary Celebration

Brad Moon

Chinese e-commerce giant JD.com (NASDAQ:JD) has had a big week. JD.com stock is seeing growth in the 7% range since Monday. Keeping the party going, JD stock is also getting a continued boost from the record-breaking results of the company’s 6.18 anniversary sale.

Source: JD.com

JD Stock Gets Boost From Record-Breaking 6.18 Sale

Amazon (NASDAQ:AMZN) has its yearly Prime Day sale, where it pulls out all the stops. The company doesn’t release dollar figures for the event, sticking instead to the number of items shipped on the day, but last year it was estimated that shoppers would spent $3.4 billion, making Prime Day the e-commerce giant’s single biggest shopping day.

JD.com also has a big yearly shopping event it calls the “6.18 anniversary sale.” The name is a little deceptive —  it sounds as though it is for a single day, June 18. However, it is actually several weeks worth of promotions, starting June 1 and running through to June 18. The company posted the results for this year’s 6.18 sale on its blog and the impressive numbers have helped to boost JD stock.

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On Thursday, JD stock price hit $29.71, before settling down to close at $29.12 for a 1.61% gain on the day. Here are a few of the highlights for JD.com’s record setting 2.18 sale:

  • $29.2 billion (U.S. dollars) transaction volume
  • Sold 2.8 million JD Plus premium memberships
  • Mobile phone sales up 100% year-over-year
  • 350 million boxes of milk sold
  • 91% of orders from JD.com fulfillment warehouses delivered same-day or next-day

The Importance of Data-Driven Tools

In its 6.18 blog post, JD.com spiked out the importance of its “Consumer to Manufacturer” or C2M initiative. The company provides data-driven tools to retail clients, including profiling buyers, targeted advertising and an AI-powered chatbot. And the new approach is showing encouraging results.

“This initiative employs big data and consumer insights, providing insights to brands to adjust their manufacturing and marketing approaches with the goal of providing consumers with products they want before they even know they want them. Transaction volume of new products and C2M products during 6.18 increased 289% compared with the same period last year. One out of every three monitors sold during this year’s 6.18 campaign were C2M products. HP saw a 100% increase in sales of its Zhan 66 laptop, a C2M product, during 6.18.”

A Reuters feature about the new data driven services being rolled out by JD.com and competitor Alibaba (NYSE:BABA) notes that programs like C2M are critical for future growth. The companies have already largely “exhausted” online growth amid a Chinese e-commerce market that is growing saturated. For revenue to increase and JD stock to grow in value, the company needs to provide more value to merchant partners, increase customer loyalty, and convince those customers to buy more. 

In addition, if data-driven tools like C2M continue to provide value to merchants, the company has the opportunity to monetize them — providing another source of revenue to help boost JD.com stock.

It’s nowhere near the $50 it topped to start off 2018, and still lags the $30 level it was trading at through much of the spring, but with a 1.61% gain on Thursday, JD stock is continuing a week of climbing back toward $30. It’s up to $29.42 as of this writing.

The results of the company’s 6.18 anniversary sale are providing a boost, but the big data tools like C2M that were employed to help get those results should help JD stock price to keep growing.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

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