E-commerce giants Sea, MercadoLibre, JD.com and Amazon are the most obvious beneficiaries of the physical AI push, because robotics lets them cut operating costs immediately. Per Nikkei, JD.com's CEO warned robots will replace its 700,000 delivery workers, with about 120 schools signed to retrain them for robot maintenance, while Amazon plans to avoid 600,000 future hires with robots. Despite retail disbelief, the direction of robotics looks clear, and other markets may follow China. x.com  x.com 

JD.com is a mispricing story, not a turnaround: the Amazon of China at a fraction of the valuation. It trades at about 0.2x sales versus about 3x for Amazon, holds $16B in net cash and has a $5B buyback. All 10 covering analysts rate it a buy with an average target near $38; the price target here is $68. x.com 

AI and robotics are about to improve Amazon's margins in a way the market is overlooking. x.com 

JD.com is one of the few China internet names whose 2026 earnings risk skews up, so its multiple can rerate on beats rather than a sentiment recovery. Its logistics-backed retail core has been resilient, quick-commerce losses should narrow as the 2025 investment cycle matures without needing a macro recovery, and international expansion is measured. Overweight with a $38 December 2026 target, 9x 2027 earnings. Risks: share loss to Pinduoduo and Alibaba, margin pressure, a weaker China. x.com 

Amazon's logistics network protects its investment case against AI agents that could hurt its platform: agents cannot rebuild its delivery infrastructure, which has reportedly become America's largest parcel carrier. x.com 

Amazon's profits should explode once capex settles because it is replacing human labor with AI and robots while bringing in record revenue. Enterprises will get more output per dollar from electricity and compute than from salaries, so the value of human labor trends toward zero. Amazon laying off employees while raising capex and posting record revenue signals that shift, which makes owning the companies doing the replacing the way to stay ahead. x.com  x.com  x.com 

Amazon is in an excellent position to capture much of the value from early humanoid and autonomy technology. Many humanoid robotics companies will fight hard for early share of an enormous market, while logistics is dominated by a handful of massive players like Amazon. The use cases shown for autonomy and humanoid robots are consistently logistics networks. x.com 

JD.com's share price should follow its free cash flow, which jumped 599% last quarter, and it has completed a $1B share buyback. x.com 

Alibaba and JD.com have grown far beyond what their flat share prices reflect. Alibaba trades near its 2016 price of about $108 while annual revenue rose from $15.7B to $148.4B, almost 10x. JD.com is back at its 2019 price of about $26.5 while revenue grew from $67.2B to $187.2B, nearly 3x. With both charts finally starting to improve, 100%+ upside is absolutely on the table. x.com 

JD.com is mispriced because its equity stakes and holdco net cash alone exceed its market cap, as if JD Retail core did not exist. Analysts fixate on the drag from consolidated New Businesses, which blurs their view. A sum of the parts values JD Retail core on a conservative EBIT multiple after stripping out JD Healthcare and JD Industrials profits, then adds the listed stakes in those two and JD Logistics, equity-method stakes at book value, and adjusted holdco net cash. x.com  x.com  x.com  x.com