JD.com earnings announced – the stock is up

It hasn’t been the best start to 2024 for JD.com Inc. (NASDAQ: JD) with the stock down by over 14%.

On Wednesday, the Chinese e-commerce company announced the latest financial results, which sent the stock higher.

Beijing based company achieved revenue of $43.111 billion vs. $42.216 billion expected. Revenue increased by 3.6% year-over-year.

Earnings per share (EPS) also topped analyst estimate of $0.661 at $0.747 per share. EPS was up by 10.18% from the same period the year before.

Full year revenue was up by 3.7% from 2022 at $152.8 billion. Full year EPS reached $3.12, up by 25.04% year-over-year.

Company overview

Founded: 1998
Headquarters: Beijing, China
Number of employees: 450,680 (2022)
Industry: E-commerce
Key people: Sandy Xu (CEO)
CEO commentary

“We were pleased to finish 2023 on a strong note, with upticks in both revenues and profitability for the fourth quarter,” Sandy Xu, CEO of JD said in a statement to investors.

“JD’s proactive actions have begun to produce results as our decisive focus on user experience, price competitiveness and platform ecosystem drives deeper and more frequent user engagement and healthier user growth momentum. With the two priorities of user experience improvement and market share expansion, we look forward to creating more value for our users, business partners and shareholders in 2024,” Xu concluded his statement.

Stock reaction



Shares were up by over 16% during Wednesday’s session, trading at $25.07 a share – the highest level since 11/1/24.

Stock performance

5 day: +8.31%
1 month: +7.18%
3 months: -7.12%
Year-to-date: -14.49%
1 year: -47.41%
JD.com stock price targets

Barclays: $35
Citigroup: $42
Mizuho: $35
Susquehanna: $30
Benchmark: $67
UBS Group: $39
The Goldman Sachs Group: $53
Sandford C. Bernstein: $31
JP Morgan Chase & Co.: $31
Morgan Stanley: $33
Bank of America: $51
HSBC: $70
JD.com Inc. is the 506th largest company in the world with a market cap of $39.04 billion, according to CompaniesMarketCap.

You can trade JD.com Inc. (NASDAQ: JD) and many other stocks from the NYSE, NASDAQ, HKEX and ASX with GO Markets as a Share CFD on the MetaTrader 5 platform. To find out more, go to “Trading” then select “Share CFDs”.

GO Markets offers pre-market and after-market trading on popular US Share CFDs.

Why trade during extended hours?

Volatility never sleeps. Trade over earnings releases as they happen outside of main trading hours
Reduce your risk and hedge your existing positions ahead of a new trading day
Extended trading hours on popular US stocks means extended opportunities
Sources: JD.com Inc., TradingView, MarketWatch, MarketBeat, CompaniesMarketCap



https://www.gomarkets.com/au/articles/shares-and-indices/jd-com-earnings-announced-the-stock-is-up/

The week ahead – RBNZ rate decision, USD, AUD and JPY inflation data

FX markets enter the new week with market sentiment firmly risk-on with all-time highs seen in US and Japanese indexes after a blowout earnings report from AI darling Nvidia (NVDA) sent stocks surging.

Ahead this week we have key inflation data out of the US, Australia and Japan along with a RBNZ rate decision which is certainly in play.

The Charts to watch this week

Gold – XAUUSD

Despite the buoyant market sentiment gold gained last week as the USD chopped around without real direction. XAUUSD finding good support at the 2020 USD an ounce level in the second half of the week. This will be a key level to watch coming into Thursdays PCE inflation data out of the US a cooler than expected reading could see the USD decline continue and likely to add to golds bullish recovery.



USDJPY

Japanese inflation data released Thursday is expected to show a sharp drop in January due to a high base last year this could impact the JPY even further, raising doubts around one of the Bank of Japan’s two conditions for policy normalisation and be bullish for USDJPY.

Though above 150 there is the specter of BoJ intervention such as we saw at these levels late in 2022. Currently 150 has become a support level for USDJPY, but upside in this pair seems capped with little upside momentum shown recently, FX traders no doubt cautious at these levels.



Both AUD and NZD outperformed last week as market optimism and steps by Chinese authorities to support their stock market lifted both the Antipodean currencies. NZD did outperform the Aussie though, with AUDNZD hitting new 9-month and 2024 lows. This week will be a big one for AUDNZD traders, with Aussie CPI expected to rise and a RBNZ rate decision where the bank is expected to hold rates both happening on Wednesday. The market is pricing in a 30% of a hike from the RBNZ, so whichever way they go expect some volatility in NZD crosses over this announcement.





https://www.gomarkets.com/en/articles/featured/the-week-ahead-rbnz-rate-decision-usd-aud-and-jpy-inflation-data/

Earnings preview – Apple, Meta, Amazon

Big tech earnings continue this week with three more of the Magnificent seven in Amazon, Meta and Apple due to report Q4 earnings after the US close on Thursday.

So far, we’ve had mixed results from the first three Mag 7 tech stocks, none of them impressed stockholders much, with Tesla, Microsoft and Alphabet all down post earnings to varying degrees, will this new batch turn things around?

AMAZON

Amazon’s cost-cutting efforts look like they begin to pay off with analysts predicting a significant jump in earnings as compared to a year ago. Earnings are forecast at 80 cents per share for Q4 2023 versus 3 cents a year ago. Revenue is also expected to jump to $166 billion which is about $17 billion more than for the same period a year ago. Another good sign for the bulls is that Amazon has a good track record with earnings beating estimates every quarter of the last fiscal year.

META

Meta comes into today’s earnings after a stellar 2023 where the stock price increased by 194% on the back of the company cutting costs and seeing an increase in users and engagement. Investors and analysts are expecting big things in the latest earnings with consensus calling for earnings of $4.93 per share up from $1.76 a year ago, with revenues of just over $39 billion.

Two big parts of the business that will be of extra importance to investors and the reaction in stock price will be Meta’s AI efforts and their growth in China, which has become a growing source of revenue for the company.

APPLE

Apple along with Tesla has been one of the Magnificent 7 laggards with the stock price down around 4% YTD. A lukewarm response from investors to their flagship Vision Pro and waning demand for iPhones from China weighing on the stock price. Despite this AAPL is expected to report notably stronger earnings than a year ago, with a consensus of $2.10 per share for Q4 2023 , an increase from $1.88 a year ago. Revenue is projected at $118 billion, a $1 billion increase from Q4 2022.

Investors will be focusing on the performance of Apple Services, plans for the Vision Pro and how sales are performing in China. If Apple can allay investors’ fears and provide guidance showing that the Chinese market is solid especially , some of the concerns that have seen the stock down so far this year could be eased.


https://www.gomarkets.com/en/articles/featured/earnings-preview-apple-meta-amazon/

The Week Ahead – Volatility set to return with FOMC, BoE and NFP ahead

FX traders have a bumper week of major economic announcements to navigate, with markets in a holding pattern awaiting the pivotal January Federal Reserve meeting, adding to that a Bank of England policy meeting, CPI readings out of Australia and Europe topped off by the US non-farm employment report.

The Charts to Watch:

AUDUSD – Aussie CPI and Chinese manufacturing PMI

Since hitting a cycle low of 0.6525 and finding support at the December lows on January 17 AUDUSD has traded in a tight range between that support and 0.66 where multiple attempts to push higher have been rebuffed.

This week’s data looks set to test that range, starting with Aussie CPI and to a lesser extent a Chinese manufacturing PMI on Wednesday. 0.66 will be the level to watch if we get a hot CPI reading, the support at 0.6525 to the downside if there is a cooler than expected reading.


Cable has also spent the last week chopping around in a tight range, GBPUSD price action has been contained in a myriad of technical levels with resistance to the upside at 1.27720 and support at the lower 2024 trendline around 1.2650.

At this weeks Bank of England meeting, the central bank is expected to gold rates steady but is will be the accompanying statement and presser where traders will look for clues as to when the bank may start cutting rates that will see FX markets re-price.


DXY comes off a choppy week with a pivotal FOMC meeting on Thursday and the always market moving NFP on Friday to get things moving.

The 2024 advance in DXY has been capped by resistance at the 200-day moving average along with the July lows-October highs 50% fib level at 103.55. The Fed is widely expected to hold rates steady at this meeting, with futures only pricing in a 2% chance of a cut, but it will be the messaging regarding the March meeting (where there is a 50-50 chance of a cut) that should see some volatility in the USD as markets re-price those odds. 103.55 will be the level to watch for the next move in DXY with a break above or below possibly signaling the next trend in DXY.


https://www.gomarkets.com/en/articles/forex-trading/the-week-ahead-volatility-set-to-return-with-fomc-boe-and-nfp-ahead/

TSMC posts better-than-expected results

World’s second largest semiconductor company, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM), reported the latest results for Q4 of 2023 before the opening bell in Wall Street on Thursday.

TSMC achieved revenue of $19.785 billion in Q4 2023 vs. $19.675 billion expected. Revenue rose by 14.4% from Q3.

Earnings per share was reported at $1.456 per share, which exceeded estimate of $1.385 per share.

Company overview

Founded: 1987
Headquarters: Hsinchu Science Park, Taiwan
Number of employees: 73,090 (2022)
Industry: Semiconductor
Key people: Mark Liu (Chairman), C.C. Wei (CEO and vice-chairman), Wendell Huang (VP and CFO)
CEO commentary

“Our fourth quarter business was supported by the continued strong ramp of our industry-leading 3-nanometer technology. Moving into first quarter 2024, we expect our business to be impacted by smartphone seasonality, partially offset by continued HPC-related demand,” Wendell Huang, CFO of the company said in statement to investors.

Stock reaction



The stock rose by over 7% during Thursday’s session after the company posted the latest results, trading at $110.32 a share.

Stock performance

5 day: +9.03%
1 month: +7.62%
3 months: +18.78%
Year-to-date: +6.12%
1 year: +24.84%
Taiwan Semiconductor Manufacturing stock price targets

TD Cowen: $95
Barclays: $105
Needham & Company LLC: $115
Susquehanna: $130
Taiwan Semiconductor Manufacturing Co. Ltd. is the 11th largest company in the world with a market cap of $570.66 billion.

You can trade Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) and many other stocks from the NYSE, NASDAQ, HKEX and ASX with GO Markets as a Share CFD on the MetaTrader 5 platform. To find out more, go to “Trading” then select “Share CFDs”.

https://www.gomarkets.com/en/articles/shares-and-indices/tsmc-posts-better-than-expected-results-the-stock-rises/

Global markets enter Q4 this week on a downbeat mood after a shellacking of risk assets in Q3 seeing the S&P 500 having its worst quarter in a year. The “higher for longer” narrative coming out of the Federal reserve and other Central banks over the last month pushing yields higher, (the US 10-year yield at 16-year highs), pressuring risk assets and seeing a relentless rally in the US dollar, whether this remains the narrative in Q4 will no doubt be based on data, and this week has a few important figures to kickstart the quarter, including central bank meetings in Australia and New Zealand and the always high impact Non-farm payrolls out of the US on Friday.

https://www.gomarkets.com/en/articles/economic-updates/markets-to-watch-this-week-usdjpy-audusd-nzdusd-gold-oil/