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JD.com Inc. (Nasdaq ADR: JD) stock is up 21.8% in 2015.
While JD.com only holds about 17% of the Chinese e-commerce market, compared to Alibaba’s 75%, the competition heated up in February 2014 when Tencent Holdings Ltd. (OTCMKTS ADR: TCEHY), essentially the Chinese WhatsApp, agreed to take a 15% stake in JD. They agreed to add a further 5% stake after they listed. In taking a JD stake, Tencent was looking to challenge Alibaba. It outsourced its own e-commerce platforms, Wanggou and PaiPai, to JD.com. This JD-Tencent alliance has given the two companies about a quarter of the Chinese e-commerce market.
JD.com grew revenues by 73% in the fourth quarter, besting analyst expectations. And at the same time, JD reported that it doubled the value of goods sold through mobile in the third quarter of 2014, according to Reuters.