JD.com (JD): ChatJD Bulletin failed to Gain Traction, down 49%

Beijing based e-commerce giant announced, AI bot ChatJD.
ChatJD would be an “industrial version” of ChatGPT.

Beijing, China-based e-commerce giant JD.com, Inc. sells electronics products and general merchandise, including audio, video products and books. They operate through JD Retail, JD Retail, JD Logistics and New Business. Despite announcing their AI bot ChatJD on Friday, stocks still fell by 49%.

On February 10, 2023, JD.com, Inc. announced they would launch ChatJD, an AI bot similar to ChatGPT customized to serve their customers. As per the company, this bot will be an “industrial version” of ChatGPT, focusing on creating content and user interactions. Fields would include retail and finances and creating summaries for online goods or financial works.

At the time of writing, it was trading at $52.29, dropping off 5.70%. The previous close was $55.45, and the open was $53.42. The fifty-two-week range is from $33.17 to $76.58. The market cap stands strong at $95.388 billion, while its volume remains at 10.94 million shares and an average volume of 7.42 million. The P/E ratio is 581.06.

An expected price target is $79.91, with an upside of 52.8%; the highest could be $109.00, and the lowest of $55.00 could be achieved. Analysts’ rating of 2.67 is for moderate buy, while short interest remains healthy with 0.82% shares sold short. The projected earning growth is 13.99%, from $1.93 to $2.20 per share.

The company boasts a profit margin of 0.21% and an operating margin of 1.29%. Revenue is strong at $1.03 trillion, while revenue per share is $658.26. The year-on-year quarterly revenue growth is 11.40%.

A chart with such recurring gaps is considered to be extremely volatile. The chart clearly shows a gap zone forming right above the demand zone. Such gaps are usually filled by retracement. It is visible that the price is coming down; however, the gap zone will also act as strong support, from where the price can bounce back.

Due to its strength, chances of breaking the gap zone on the way down are slim. But if in case that happens, the price might consolidate in the demand zone for a while before stabilizing and moving upwards. While in the gap zone or the upper ranges of the demand zone, a decent buying opportunity could occur, but that’s debatable.

If the ChatJD announcement gains some traction, the price might respect the lower line of the supply zone and would consolidate there for some time before going up.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing