Wasn't it yesterday that the Street wanted nothing to do with high multiple growth stocks?
Jim Cramer is pretty sure it was.
Yet, on Thursday, investors couldn't buy shares of the newly IPO'd JD.com fast enough. Ironically, JD.com follows the same formula that Wall Street has rejected for months. "It has explosive sales growth and seeks to dominate its category no matter the cost," Cramer said. Even with $11.5 billion in fiscal 2013 revenue, the company posted a net loss of $8 million.
Cramer realizes it might have been excitement about the forthcoming Alibaba IPO that drove enthusiasm for JD.com, or it may just be the general allure of China's e-commerce industry.
But in this case, the reasons pale as compared to the price action. Demand was significant with shares gaining 10 percent on their first day of trade.