Dada Nexus Limited (DADA)

[JohnQQ]

From Seeking Alpha

Dada, The Chinese Uber, Trades At 7x Sales With 57% Sales Growth

Dada delivered more than 90% sales growth in the nine months ended September 30, 2020. The company shows a significant amount of cash in hand, and there is large stock demand. I don’t believe that the company is cheap at 7x sales because Uber trades at a similar valuation. With that, investors will do good by looking very carefully at the new developments to be delivered by Dada’s management. If the new cash is used for new technology or marketing expenditures, the revenue may increase even at a larger pace.

Double Digit Sales Growth

Financed by Walmart (WMT) and JD (JD), Dada Nexus provides on-demand delivery in China.

The CEO and founder is an engineer from MIT, who sold AdChina to Alibaba and Anjuke to 58.com. In our view, the business profile of Mr Kuai, who is only 37 years old, will attract the attention of investors:

The company intends to integrate its Dada Now and JDDJ platforms into a new platform offerging on-demand retail and delivery in China. The number of tools offered to clients is overwhelming. With data mining and AI technologies, Dada offers smart order recommendations and automated order pricing technologies. On the top of it, the company also offers a rider management system that manages the behavior of millions of riders: