Are Investors Excessively Punishing Companies That Invest In Growth At The Expense Of Margins?

  • While not a systematic inquiry, we nevertheless spot quite a few companies whose shares get punished for investing when that results in some margin decline.
  • With investment the cost gets in front of the benefits, so this will produce situations in which time will rectify the problem.
  • This is especially the case with companies with a good investment record, like JD.com.
  • These shares have been heavily punished in a matter of weeks and are now oversold and sitting on support levels.

Source: Are Investors Excessively Punishing Companies That Invest In Growth At The Expense Of Margins? – JD.com (NASDAQ:JD) | Seeking Alpha