Why is it so much that the capital market is favored?

Editor’s note: This article comes from the WeChat public number “American Stock Research Institute” (ID: meigushe), author of the US Stock Research Institute.

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Crushing Jingdong smoothly, why is the capital market so much to be seen?

Recently, the stock price hit a record high. This news took turns on the major mainstream technology websites. In Thursday’s trading, the stock price rose by 12.56%, to close at 39.96 US dollars, with a market value of 46.448 billion US dollars, becoming China’s fourth largest Internet company, second only to Alibaba, Tencent and the US group. This time, the stock price rose, and once again, it made the fight more than Jingdong, and won the second position of e-commerce.

This year is a year of arrogance for the fight, not only the overall stock price performance is particularly bright, but also received a lot of well-known venture capital institutions buy rating. According to the results of the previous two quarters of financial reports, the growth rate of various core data is still more than Ali and JD. This further strengthens its position in the e-commerce industry.

After many years in Ali and Jingdong’s e-commerce industry, the newcomers have been able to gain a foothold in the sinking market with the thunder and lightning, and open a new breakthrough in the e-commerce industry with the social e-commerce model. Still maintaining a high growth rate, this has increased the expectations of the outside world. This time, the stock price rose to a record high, and it once again shows that the business model of a lot of business is recognized by the capital market. In the end, what magic does it attract to investors? Although the surge in stock prices has boosted confidence, whether it can go to Ali in the future.Continue to maintain a steady rise?

To achieve more than three times of Jingdong’s three overreaching core data has been completely hanged Jingdong

In the first two years, users who used a lot of money were considered by the outside world to be “great and cheap”, but nowadays, the rapid development of many fights has successfully captured the hearts of 400 million users. “I used to ignore it, but I can’t afford it today.” It may not be an exaggeration to use this sentence for a lot of work.

The stock price of this fight has reached a record high, and the market value once again surpassed Jingdong. It has further proved to the outside world that it has the strength to stabilize the e-commerce position in the e-commerce industry. Previously, the development goal of a lot of efforts was to catch up with Jingdong, but now it seems that the goal of a lot of work seems to have been achieved. According to the current data, it has already had enough strength to prove that it is the e-commerce second.

In terms of user scale, the competition has gradually opened up the gap between active users and JD. Last year, when the company went to the US to go public, its user scale was already approaching Jingdong. At that time, the outside world still questioned the speed of catching up. According to the first financial report released after the listing, in terms of active users, Realize the first time beyond.

In the Q4 quarter of 2018, the number of active buyers of the multi-platform platform reached 418.5 million, an increase of 173.7 million from 2017’s 244.8 million, a year-on-year increase of 71%. In the Q1 quarter of 2019, as of the end of March, the number of active buyers of the platform reached 443.3 million, an increase of over 50% over the same period last year. As of June 30, in terms of annual active users, the company has surpassed Jingdong to become the second largest e-commerce platform in China after Ali.

According to active users of Jingdong, as of June 30, 2019, Jingdong’s active users in the past 12 months increased to 321.3 million, and in the second quarter, the number of active users increased to 10.8 million. In the first quarter of 2019, More than 5 million users. In terms of active users, the current multi-player has surpassed the Jingdong 160 million scale. This core data surpassing is the key to getting more and more in the second position of e-commerce.

In terms of GMV, a lot of jaundice in the internal speech revealed that the latest quarterly real payment GMV has surpassed JD.

In this data, there has been a fabulous growth rate in the fight, and it has become China’s third largest e-commerce platform (calculated by GMV) in just three years. In September 2016, the number of users was only 100 million, and the monthly GMV (commodity sales) was only 1 billion yuan; however, in January 2017, the monthly GMV of the fight exceeded 4 billion yuan. In 2018, a lot of GMV broke through the size of 471.6 billion

From the data of the 2019 Q2 financial reports of the three companies, the business revenue of the company increased by 169% year-on-year. The GMV (commodity transaction total) in the past year increased by 170.5% year-on-year to reach 709.1 billion yuan. In the second quarter, Ali and JingdongThe scale of GMV has not been disclosed. However, according to their data last year, Jingdong’s GMV of 2018 is 1700 billion yuan. According to the scale of the first half of this year, it broke through the size of 709.1 billion. In fact, the gap between it and Jingdong is indeed higher. Come closer.

The price of the stock and the market value have caught up with Jingdong. This data is the most intuitive. As of the end of the article, the current stock price is 39.96 US dollars, the market value is 46.448 billion US dollars; Jingdong’s stock price is 30.72 US dollars, the market value is 44.617 billion, more than has more than 1.6 billion US dollars.

From the comparison of these core data, the fight is still hoisting Jingdong in any aspect, so it is now just right enough to sit on the second position of e-commerce. Why can a lot of stock prices have such a high rise? What is the point of breaking out of its business model?

Strong multi-business model is now huge growth potential Upward development space is recognized by investors

Crushing Jingdong smoothly, why is the capital market so much to be seen?

Before, based on the release of bedrock capital and snowball data, the “2019 US stocks in the third quarter of the list”, although the stocks in the third quarter fell more and more, but the overall downturn is difficult to hide the stock highlights, e-commerce three The giants in the fight have pushed more pressure on Jingdong and Ali, and they have risen to the top of the list of rising companies. Why can you attract more investors in the capital market?

First, the fight has an absolute competitive advantage in the sinking market, and the market has huge potential for consumption

In the sinking market, the competitive advantage of playing a lot is still very obvious. On July 23, QuestMobile, the domestic authoritative data company, released the semi-annual report of China Mobile Internet. According to the report, after experiencing the “cat fight dog” e-commerce war, in June, the number of hits in the sinking market increased by 72.2 million year-on-year, a year-on-year increase. 59.4%, ranking first in the e-commerce first network.

In the e-commerce industry, the user base in the sinking market has become the fastest growing group. The user’s consumption potential in this market is huge, and many of them are sinking in the low-price mode. In the future, it is still in this market. There is also a very high growth rate. According to the data from QuestMobile’s sinking market report, as of March 2019, the number of users in the sinking market has exceeded 600 million, accounting for more than half of the total mobile Internet users in China, and the per capita usage time is longer than non-sinking users. The usage time has exceeded 5 hours and the growth has been faster. With

Second, more and more out of a road different from Ali and Jingdong, to go to the centralization mode to get itGuest is more beneficial

Alpha has been sharing most of the market share with JD in the e-commerce industry, which makes it difficult for other incomees to have the opportunity to seize their market. With the help of the social e-commerce model, the decentralized business model has opened up a way out in the sinking market. In the early stage, this is conducive to avoiding the positive competition with Ali and Jingdong, and letting it use the WeChat acquaintance to socialize rapidly. Acquiring users has also become an important milestone in the sinking market.

As we all know, the innovative business model is the key to its foothold in the industry. It activates a large number of incremental demand and new consumer channels, including second- and third-tier cities where e-commerce is not yet smooth. Especially for a group of middle-aged and old-age consumers who do not often visit Taobao. For example, through the “1 yuan to win the treasure” and other group mode, the fight has captured a large number of consumers in the third- and fourth-tier cities in a short period of time. Because the group gathers the crowd, the same thing gathers faster and the tail is less.

Third, more and more, gradually stepped onto the rural encircling city, and penetrated the first and second line markets from the bottom up

After making great success in the sinking market, it is not only satisfied with the sinking market, adopting the strategy of rural encircling the city, and starting to counterattack the first- and second-tier markets. Agricultural products and subsidies are two sharp knives for counterattacks. . According to the data released by the National Bureau of Statistics on July 31, the number of young users aged 16-35 is about 83% of the number of users, and 44% of new users are from first- and second-tier cities. The proportion of first- and second-tier users and penetration rate are both Ascension, this will further increase the profitability of the fight, because the attractiveness of low prices to consumers is not divided into cities.

For the more and more, it can penetrate into the first- and second-tier cities to show that its platform influence is improving in these big cities, and the users of this market are also reversing the direction of the public opinion, which is mainly reversed. Thanks to more efforts to increase investment in the quality control of the product, to minimize the problem of fake goods on the platform. At present, the growth of many new users is coming from this market. From the bottom up, it also proves that a lot of business models are feasible, and there will be some impact on the impact of Ali.

Four, want to become “Costco+Disney”, the main push C2M mode to expand the status of agricultural products

Before Huang Wei said, I want to do more Disney + Costco. The implication is that it wants to be a platform that can be sold cheaply and interestingly. Judging from the many follow-up actions, its measures of 10 billion subsidies, new brand plans, and agricultural goods are all available to consumers to buy good quality products at “cheap” prices. At the same time, a lot of orchards, limited time spikes and other play methods, also make consumers addicted to shopping fun.

Many people think that the success of the fight isIn the group, the products are sold cheaply, although they are correct, but the core of it is the C2M business model behind its products, which is an unprecedented business model of the Internet, and is the most important point for investors. . From the supplier’s point of view, the C2M model allows suppliers to plan large-scale production, reducing the corresponding fixed costs, especially for fruit and agricultural products, because no one wants it when it expires.

With the increase in the layout of C2M, especially in the agricultural products, the advantages are further expanded, which is conducive to building a stronger competitiveness in this product category. At present, the company is gradually improving the shopping experience of users, and the types of products on the platform are further expanding. Its C2M model still has potential for its huge development momentum.

The stock price rises and boosts confidence. But the follow-up trend is also facing great challenges

Crushing Jingdong smoothly, why is the capital market so much to be seen?

This time, a lot of stock prices can achieve such a big rise, and indeed, to a certain extent, it will further stimulate the performance of the stock price in the future, but this situation still needs to be treated rationally. At present, there are still many problems in the development of a lot of competition. If it can not handle these risks in the future, it is likely to affect its future stock price trend.

First, Ali and Jingdong force to sink the market, and the threat is increased.

In the first half of this year, e-commerce giants Ali and Jingdong all put down their bodies and pointed to the sinking market. Both Ali restarted and cost-effective, and Jingdong’s comprehensive bet on the purchase business. The 2019Q2 financial report shows that the two heads in the e-commerce sector are protected from the decline in domestic retail sales growth, but the shift in business focus is a bit more obvious, and their battle with the sinking market will be more intense. Both Ali and Jingdong are deeply cultivating and sinking the market on the basis of their greatest advantages. They have quickly attracted a large number of users. For the sake of more, they will encounter a strong attack from Ali and Jingdong and want to maintain the market share. It will be even more daunting.

Second, the fight is still at a loss stage, and the failure to achieve profitability will be questioned by the market

From the perspective of capital markets, although many investment banking institutions such as Nomura Securities, Goldman Sachs Bank, and Barclays Bank have expressed their optimism, they are interested in their future potential. Once they cannot maintain high growth rate, they cannot achieve it. Profitability will inevitably be questioned, leading to a correction in market value. In the second quarter, the net loss was more than 1.0033 billion yuan. At present, it is still implementing the model of loss subsidies to improve the repurchase rate of users. Once Ali and Jingdong are alsoIn this way, a large number of follow-up customers will face higher costs.

Three, it’s very difficult to get more and more from bottom to top, and the attraction of capturing first- and second-tier cities is not enough

For many people, although it has a lot of user growth in first- and second-tier cities, we can see that this part of the user growth is actually not very easy. On the one hand, Ali and Jingdong are still spending in this market. The preferred platform for shopping, on the other hand, in terms of product categories, there is still a lot of competition in brand products. For users in first- and second-tier cities, they are more concerned about brand quality and variety, and more in this respect. Need to further expand its commodity competitiveness.

On the occasion of the double 11 coming, the stock price of the company can achieve such a high increase, or it can stimulate more investors to trust it. For the fight, it can be obtained in this e-commerce war. A higher record will also be related to its financial results in the next quarter. For the fight, the catch up with Jingdong proves that its business model is promising, but whether it can challenge Ali’s position is also waiting to be seen. Can it achieve such a transcendence? The US stock research society will continue to pay attention.