Cloudflare–JD Cloud AI Edge Expansion Could Be A Game Changer For JD.com (JD)

• Earlier this year, Cloudflare, Inc. and JD Cloud, an affiliate of JD.com, expanded their five-year partnership to build a global platform that lets developers deploy, manage, and scale AI inference workloads with sharply lower latency between China and overseas markets.
• This move effectively plugs JD Cloud’s infrastructure into Cloudflare’s worldwide edge network, creating a high-performance AI cloud that could deepen JD.com’s role as a technology and infrastructure provider rather than just an e-commerce marketplace.
• We’ll now examine how JD Cloud’s expanded AI partnership with Cloudflare could influence JD.com’s investment narrative around supply chain technology and international growth.

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JD.com Investment Narrative Recap

To own JD.com, I think you need to believe its core retail and logistics platform can compound value while newer bets like food delivery and international initiatives eventually turn from loss makers into earnings contributors. The expanded AI partnership between JD Cloud and Cloudflare supports the supply chain technology story, but it does not materially change the most immediate swing factors, which remain competition in food delivery and pressure on group-level margins.

Among recent announcements, JD.com’s decision to return about US$1,500 million via share repurchases under its current buyback plan stands out alongside a rising dividend. For me, that capital return matters because it sits against widening non GAAP losses in newer businesses and moderating profit growth, so investors need to weigh near term shareholder payouts against the execution risk in JD.com’s expansion efforts...

Read the full narrative on JD.com (it's free!)

JD.com's narrative projects CN¥1,517.4 billion in revenue and CN¥45.1 billion in earnings by 2028. This requires 6.2% yearly revenue growth and about a CN¥6.4 billion earnings increase from current earnings of CN¥38.7 billion.

Uncover how JD.com's forecasts yield a $45.26 fair value, a 57% upside to its current price.

Exploring Other Perspectives

Twenty four members of the Simply Wall St Community value JD.com between US$28.36 and US$82.68, underlining how far apart individual views can be. When you set that against concerns about intensifying food delivery competition and potential long term margin pressure, it becomes even more important to compare several of these perspectives before deciding how JD.com might fit into your own portfolio thinking.

Explore 24 other fair value estimates on JD.com - why the stock might be worth over 2x more than the current price!

Build Your Own JD.com Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your JD.com research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free JD.com research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate JD.com's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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