For a while, Chinese stocks—particularly Chinese tech stocks—looked like they would defy market gravity. Today’s trading—which featured JD.com (NASDAQ:JD) in full retreat—showed otherwise. JD.com led the way down, but it was hardly alone. Alibaba (NASDAQ:BABA), Pinduoduo (NASDAQ:PDD), Baidu (NASDAQ:BIDU), and even Bilibili (NASDAQ:BILI) all fell to varying degrees. JD came off the worst, but Bilibili wasn’t far behind. Conversely, Alibaba lost the least.
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As for what sent JD downward, most of it revolves around the Chinese recovery from the disastrous policies of Zero-COVID. While there is a recovery in progress—and in some sectors, it’s quite good—it’s not universal. For instance, first-quarter earnings for JD came in at $0.69 per share against analyst expectations of $0.50. Revenue, meanwhile, was up just 1.4%, coming in at $35.4 billion. Therefore, the pent-up demand factor is virtually nonexistent.
JD may have been hit the hardest, but it represents the best overall package. It’s currently rated a Strong Buy, with a 75.06% upside potential, thanks to its average price target of $62.18. Meanwhile, Bilibili has the lowest upside of all five stocks at 39.93% due to an average price target of $25.51. It’s also the only Moderate Buy of the five.
