What is Dada Nexus (Dada)?

Dada Nexus ( NASDAQ: DADA) is a Chinese small cap capitalizing on the digitalization of retailers. It owns two segments: Dada Now, a cost-efficient crowdsourcing delivery platform, and JD Now's ecosystem, which allows retailers to better manage their warehouses and customers. They work together closely with the JD Group and are backed by Walmart.

Is now a good time to buy Dada Nexus shares?

I believe now - ideally at technical support level of $1.36 per share - is an ideal time to buy Dada Nexus shares as sentiment for the stock is hitting new bottoms. Additionally, its US$40 million buyback program still has 30 million left to push the shares higher.

How does Dada now work?

Dada Now is 44% of total revenue. It offers both intra-city delivery and last-mile delivery, mostly in tier 1 and tier 2 cities. Merchants use Dada Now for JDDJ orders or place delivery orders directly. Dada Now uses a crowdsourcing system where rates are set by city/region, distance, weight/volume, with surge pricing for rider shortages.