GOOGL (Google/Alphabet,$1,154.38) announced this morning of it’s invested partnership with JD, China’s second largest e-commerce player (JD.com,$46.81), for $550 million dollars in return of class-A ordinary shares worth $27 million, promotion of JD’s goods on GOOGL’s shopping service and more. See our most recent tech stocks discussion here.
JD is second place to China’s #1 e-commerce business, BABA (Alibaba,$205.70) and investors see the partnership with GOOGL a great call since JD and GOOGL are also competing with tech giant AMZN (Amazon,$1,705.00).
Image from MSNMoney.com
In lieu of this partnership, JD has made relatively slow growth over the past 10 years- not bad since it’s #1 competition BABA, the leading e-commerce in China. Buy-and-hold investors see this company as a long-term investment. And though $550 million is not a grand number, it’s a great contract price to hold a partnership.
As the stock making an 8% climb after-hours on the market today (currently $46.80), it’s not too late to buy-in on JD.
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Categories: Stock Talk