Quick Win By The Algorithm: Vipshop Share Price Soars After Agreements With Tencent and JD.com

Quick Win By The Algorithm

Vipshop Holdings Limited, through its subsidiaries, operates as an online discount retailer for various brands in the People’s Republic of China. It offers a range of branded products, including women’s apparel, men’s apparel, women and men shoes and accessories, sports apparel, and sports gear, and footwear for sports; skin care and cosmetic products. The company also provides furnishings and decor, toys, and games for boys, girls, infants, and toddlers of all age groups. In addition, it offers home furnishing products snacks, health supplements, and occasion-based gifts, such as chocolates, moon-cakes, and tea. Further, the company provides consumer financing, supply chain financing, and wealth management services. The company provides its branded products through its vipshop.com, vip.com, and lefeng.com Websites, as well as through its cellular phone application. Founded in 2008, Vipshop Holdings Limited has its headquarters in Guangzhou, the People’s Republic of China.

An agreement between Tencent Holdings Limite, JD.com, Inc. and Vipshop Holdings Limited was settled last week. The leading provider of internet value-added services in China, Tencent, and China’s largest retailer, JD.com, decided to invest an aggregate amount of approximately $863 million in cash in the leading online discount retailer for brands in China, Vipshop.

Tencent will invest $604 million and receive 7% of total issued shares of VIPS, while JD.com will invest $259 million and receive 5.5%. Both companies are paying a 55% premium for the shares, which are subject to a two-year lockup restriction. They will have the right to appoint a director and an observer to VIPS’s board of directors during this period.

The three companies are also setting business cooperation agreements, establishing a cooperative relationship between them. Tencent will enable Vipshop to utilize traffic from Tencent’s Weixin platform. JD.com will grant VIPS entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry. Moreover, JD.com will also assist VIPS in achieving certain GMV targets through JD.com’s platform.

According to Eric Ya Shen, VIPS’s Co-founder, Chairman and CEO, this cooperation is being settled in order to benefit internet users and consumers in China. After the agreement, VIPS share price soared.

On December 12th, 2017, I Know First issued a bullish 7-day forecast for Vipshop Holdings Limited, Inc. (NYSE: VIPS). The forecast showed a signal of 29.01 and a predictability of 0.15. In accordance with the forecast, VIPS’s stock returned 41.96% over this period, solidifying another quick win by the I Know First algorithm.

Current I Know First subscribers received this bullish VIPS forecast on December 12th, 2017

 

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.