Gainers📈 & Losers📉

Our Biggest Gainers & Losers of the Day in the $100,000 Build Portfolio

For the 27th November 2024:

• Getting Rich With China 💰 

Getting Rich With China 💰 

Two titans. One country. One massive opportunity.

Chinese stocks rallied today from rumours that there’s even more stimulus on the way. What’s the best way to use this to fill our pockets?

There’s a few options.

You could take a bet on the economy as a whole with a China-focused ETF like FXI. Not a bad move. Me personally? I’m loading up on two companies that own 69% of China’s e-commerce market. 🤯 

I’m talking about JD.com & Alibaba.

 Why These Companies? 🤔 

China is a $1.4 trillion e-commerce market set to be $2.31 trillion by 2029.

To capture some of that value you want to own the big dogs in the space. That’s where Alibaba & JD come in. When Chinese wallets open, the cash is probably heading in this direction.

There’s another reason I’m keen to split my money between these two.

They’re similar but they’re not exactly the same. Alibaba’s more of an international operator. JD’s a domestic workhorse with slick logistics. Both are positioned perfectly to benefit from a post-stimulus consumer spending boom but positioned just a little differently in the market.

I’m not saying the movement of these stocks isn’t heavily correlated. It just helps me cast a wider net over this Asian market to max out the upside.

Latest Earnings Reports📊 

Both of these guy’s have reported earnings recently. They had a similar story there, too.

Earnings beats with small revenue misses & stocks prices falling because of it. I’ve been buying since then.

The blame for the misses was put on to a slowing economy in China so with more stimulus on the way, we should a solution on the horizon. Even with the revenue misses, there were a few things to be excited about.

Alibaba (BABA):

• The international MVP 🌍. Their global platforms (Lazada & AliExpress) smashed this quarter, with revenue up 29% YoY.

• Cloud revenue up 7% YoY, & AI-related revenue? Triple-digit growth for the 5th straight quarter

JD.com (JD):

• The logistics king in China. Think Amazon with an Asian flare.

• Recent Singles’ Day (China’s Black Friday) promo saw 20% YoY growth.

• Heavy focus on electronics and fashion, which is booming post-pandemic.

These two just scream buy the dips & that’s what I’m doing.

I’ve got a price target of $50 for JD & $120 for Alibaba which is a 32% & 39% gain from current price, respectively.

Both price targets would bring us into “Fair Value” territory & that’s backed up with technical analysis, too.

I’ll be keeping eye’s on Alibaba’s cloud business & JD’s new active users as their branch out into new genres so might revise these numbers higher if all looks good. Or lower in a worst case scenario.

Likely case is I’ll be riding this up & to the right… 🎢 

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That’s all! See you same time tomorrow 👋 

P.S Hit reply & let me know what you thought of today’s newsletter. All feedback is welcomed ❤️