JD.com (JD) is trading at a three-month high after announcing a strategic partnership with Google (GOOG, GOOGL), who is investing $550 million in cash at $40.58/ADS.
Google and JD plan to collaborate on a range of strategic initiatives, including joint development of retail solutions in a range of regions around the world, including Southeast Asia, the U.S. and Europe. By applying JD's supply chain and logistics expertise and Google's technology strengths, the two companies aim to explore the creation of next generation retail infrastructure solutions, with the goal of offering helpful, personalized and frictionless shopping experiences.
JD also plans to make a selection of high-quality products available for sale through Google Shopping in multiple regions.
"This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world," said JD.com's Chief Strategy Officer Jianwen Liao. "This marks an important step in the process of modernizing global retail. As we celebrate our June 18 anniversary sale, this partnership opens a new chapter in our history."
This is the second major US corporation to partner with JD.com, the eCommerce rival of Alibaba (BABA). JD partnered with Wal-Mart (WMT) two years ago and expanded the cooperation last summer.
JD.com has a market cap of ~$65 billion. The stock trades at over 60x earnings but less than 1x sales estimates for the year.