Single’s Day, the Black Friday of the Eastern World is the biggest shopping day of the year — these three stocks are set to benefit
Nov. 11, 2021
Single’s Day, also known as Double 11, or Bachelor’s Day, is a holiday celebrated in China for people who aren’t in relationships. In more recent years, retailers of all shapes and sizes have put together promotions to encourage sales from younger consumers, but it has stretched far beyond that now; why should it just be for young people? Everyone loves a good deal. Here are three companies to look out for.
JD.com
JD’s (NASDAQ: JD) model can be split into three different businesses; e-commerce, logistics, and technology. What separates JD from others is the fact that it does mostly first-party selling — you’re buying directly from JD, not a business putting a listing on its site. It has a world-class logistics network, which delivers 90% of orders same-day, or next-day. While you might be more familiar with the next big name on this list, JD is China’s largest direct retailer in terms of revenue.
Well, it’s meant to be Single’s Day. However, JD has been running a promotion since November began. And to be honest, it doesn’t seem like this Evergrande situation has put much of a halt on spending yet anyway, with over 190 million products sold in the first four hours. iPhones and other mobile phones, in general, were among the most popular items, with some brand sales spiking over 300% year-over-year (YoY). So while we’re celebrating, congratulations on your sales too, Apple (NASDAQ: AAPL).
Alibaba
You can’t mention Asian stocks without bringing up Alibaba (NASDAQ: BABA), the e-commerce and cloud services giant. JD isn’t alone in starting promotions early, Alibaba did the exact same thing. It’s more of a festival than a day by the looks of things. But for its main promotion day yesterday, Alibaba said that over 400 brands, including Apple, have made over $15 million in sales each. Maybe I’ve tackled this all wrong, I think I should have done an article on why you should buy Apple. We always look at spending habits, so if you’re interested in learning more about how it affects your investments, have a read of this article.
With regulatory scrutiny, tech crackdowns, and the overall economic environment, investors have shied away from China in general, but Alibaba has been a top pick for value investors. Buyers beware though — over $15 billion of Alibaba’s cash was ‘donated’ to government causes earlier this year, but it’s still one to keep an eye out for. It could well be a turnaround play so if you want to check up on this one, you can have a look at the Q3 earnings report that will be announced on November 18, 2021.
Sea Limited
Sea Limited (NYSE: SE) operates in South-East Asia, or the SEA region, hence the name, but it has also expanded now into Latin America and Europe. Sea Limited operates in three segments; e-commerce (Shopee), gaming (Garena), and digital finance (SEA Money) — definitely three sectors that have been exploding in recent years, and the price of shares reflects that, up 68% year-to-date (YTD).
Customers are growing substantially too — one in three customers were brand new to the Shopee platform this year. Last year saw over 200 million items sold on the day, 2.5 billion in-app game hours, and 20 hours of live streaming watched on Shopee live. Q3 earnings are on November 16, 2021, so hopefully, we will have an update on this year’s sales growth and overall expansion.
Takeaway
These are still all powerhouse companies that have been growth monsters since their inception, and there’s likely a lot of room for growth still. Although economic conditions remain uncertain right now, it’s important to add some geographic diversity to any portfolio, so these could be some great picks to add to your watchlist.