JD.com, Inc.
Thesis
JD.com is currently undervalued, trading at only 5x owner’s earnings while its core retail and advertising business deserves to trade at higher multiples. The company has a strong logistics network and is positioned to capture more advertising revenue, which is expected to grow significantly. The target price of $80 reflects a 27% IRR based on a sum-of-the-parts valuation that separates out non-core segments.
Did it work?
The +17.3% price gain is directionally consistent with the long thesis that JD.com was undervalued at 5x owner's earnings, indicating the market began recognizing that value. However, the pitch set a specific target of $80 and a 27% IRR, and with both the elapsed time and the starting price unknown, it is impossible to confirm whether the target was reached or the full re-rating (advertising growth, sum-of-the-parts value) played out. The positive but evidently incomplete return relative to the stated IRR ambition supports a partial verdict rather than a decisive one.