Bloomberg reported that JD.com has climbed 3.3%, extending its advance 28 percent since the U.S. debut in May. Online fashion retailer Vishop Holdings Ltd. (VIPS) surged the most in seven months, while beauty shopping site Jumei International Holding Ltd. (JMEI) rose 12 percent.
Gap’s online store constitutes JD.com’s attempt to shift away from retailing and toward a marketplace model similar to Alibaba Group Holding Ltd. In order to enhance JD.com’s mobile presence, it has partnered with the owner of China’s most popular instant message applications, Tencent Holdings Ltd.
Bloomberg Intelligence analyst Praveen Menon said, “The move shows that JD is moving from the model of buying products and selling them to consumers toward being more of a platform which directly connects buyers and sellers.” He added, “The significant thing that JD had done is combine their business with Tencent’s business, and through that they gained the big social media platform that Tencent has. That’s a significant transaction, and JD has a very powerful partner.”
JD.com increased to $24.27 after selling 15 percent stake to Tencent in March, Bloomberg reported. It gained access to WeChat and Mobil QQ apps, Internet giants with more than 450 million active uses. Vipshop added 6.7% to $20.33, its biggest gain since May 15, while Jumei spiked to $15.42, extending its three-day gain to 21 percent.
Vipshop said over 80 percent of the accumulative 90 million members are females, contributing to 90 percent of its sales. The adjusted net income is set to more than double to $56.1 million in the fourth quarter, which was estimated by nine analysts collected by Bloomberg.