Why analysts are watching it
Analysts are watching VIPS due to its shifting financial strategy amid fierce competition. On April 26, 2026, Sven Carlin, Ph.D., in his video "KWEB ETF - The Ugly Stocks Nobody Wants Cares About!", noted that while VIPS is still profitable with a new dividend and share buybacks, its growth has stalled, making it potentially a "melting ice cube." He highlights the company's struggle with profitability due to extreme competition in the Chinese e-commerce market, where companies are heavily investing in customers, leading to lower profits. The primary risk remains the intense competitive landscape in China.
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"Whip shop I have analyzed this six years ago. It's competing with Alibaba. They are still profitable. They have a dividend now. So things look good. The growth is gone. So it might be a melting ice cube. They are still struggling with that profitability. But they are now returning money to shareholders, doing buybacks, paying dividends. That is something. But very hard to be competitive. And we know the competition is extreme there. Everyone is investing in the customer, which means lower profit"
— KWEB ETF - The Ugly Stocks Nobody Wants Cares About!