This article was originally published by TheStreet on August 19, 2014
NEW YORK (TheStreet) -- JD.com (JD_) , one of the biggest players in China's e-commerce market, posted its second-quarter results last week --its net loss increased by more than 20 times from the same period last year. Yet, its shares climbed by 2% when the markets opened on Monday.
Why? Because JD.com's business model makes it very familiar to anyone who knows Amazon (AMZN_) . JD.com sells a vast variety of products to consumers, often at lower prices than conventional brick and mortar stores. Hence JD.com's shares trade like those of Amazon, purely on growth. As long as JD.com manages to grow its revenues at a robust pace, its shares will likely continue going higher.
JD.com's shares have climbed 44% since its IPO in late-May, currently hovering around $30. For the third quarter, the company has forecast growth of between 55% and 61% from last year.