Can Walmart make money at Dada Nexus? — Market Mad House

The grocery delivery wars are heating up. Walmart (NYSE: WMT) bought a 10.7% stake in Chinese grocery delivery platform Dada Nexus (NASDAQ: DADA).

Dada Nexus combines JD Daojia’s platform for supermarket orders and Dada, a platform that crowdsources food deliveries, Investor’s Business Daily report. Customers use the combined platform to order food and other items from supermarkets and convenience stores.

Dada Nexus claims to have 11.9 million customers in China. Investor’s Business Daily claims Dada Nexus’s customer base grew by 68% in the past year, rising from 7.1 million. In addition, the average Dada Nexus order has risen by 50% to over $21.

Can Dada Nexus make money?

Walmart owns around 94.88 million shares in Dada Nexus. Dada Nexus Ltd. (NASDAQ: DADA) sold 20 million American Depository Receipts (ADRs) in a 5 June 2020 Initial Public Offering (IPO).

The IPO raised $330 million Reuters reports. An ADR is a negotiable certificate that represents a specific number of shares in a foreign company. Foreign companies sell ADRs on US stock exchanges to raise money in the American market.

DADA Nexus shares began selling at $15.99 on 5 June 2020. By 18 June 2020, Mr. Market paid $22.47 for a DADA share…