Google Invests in JD.com: The Asian e-commerce markets are rapidly expanding, and because of this, United States technology companies are working towards edging themselves into this fast-growing market. Google, for instance, is attempting to do so by investing in JD.com.
Google Invests in JD.com
On Monday, word surfaced that Google, whose parent company is Alphabet, Inc. (NASDAQ:GOOGL), will be investing in JD.com (NASDAQ:JD), which just so happens to be Alibaba’s (NYSE:BABA) main competition.
This move is Google’s clear attempt at entering the Asian e-commerce market, although it’s going to benefit not only the company and JD.com, but the majority of the world too. According to the tech behemoth, Google and JD.com will work towards finding new solutions that can improve consumer’s shopping experience across the globe.
With the Google and JD.com partnership, products of the latter will be displayed on Google’s shopping service. This is great news for JD.com, as it will allow consumers outside Asia to see its products. Meanwhile, Google is now going to be eligible to use JD.com’s supply chain, and they can apply it to its technology.
Google investing in JD.com is important news for Southeast Asia as well. Why? Because Google and JD.com will be developing retail solutions together in Southeast Asia. By giving these consumers retail solutions, it’s likely that more money will be spent. And Google has already forecasted Southeast Asian consumers to spend billions of dollars online by the year 2025.
The Stocks
It appears that the market is excited, or, at the very least, optimistic about Google investing in JD.com. At press time, both stocks are in the green zone.
According to Google Finance, at 3:47 p.m. EDT, Google was trading at $1,183.24. This means the GOOGL stock was up 2.07% at the time. As for JD.com, according to Google Finance, the company was trading at $43.69 at the same time. This means the stock was up 0.57%. Both companies are large-cap companies, with market caps way over $2B.
The Takeaway
Now that the news has broken of Google investing in JD.com, it’s going to be important that we keep our eyes peeled over the next month. Why? Just to see if more details regarding the partnership are posted. Furthermore, it’s going to be interesting to see if the Alibaba stock takes a tumble because of this.
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