JD Stock: China E-Commerce Firm Beats Q4 Goals

China e-commerce giant JD.com (JD) on Thursday handily beat expectations for the fourth quarter. But JD stock wavered in early trading.

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The Beijing-based company reported adjusted earnings of 70 cents per U.S. share on revenue of $42.8 billion. Analysts polled by FactSet had expected JD to report adjusted earnings of 51 cents a share on revenue of $42.53 billion. On a year-over-year basis, JD earnings jumped 100% while sales advanced 7%.

“During the pandemic, our steadfast commitment to helping society further established JD.com as a highly trusted brand,” Chief Executive Lei Xu said in a news release. “Looking ahead, amidst ever-evolving opportunities and challenges, we will stay focused on lowering costs, increasing efficiency and constantly improving user experience.”

JD is one of the largest e-commerce companies in China, competing with Alibaba (BABA) and PDD Holdings (PDD). The company also provides supply-chain technology and services.

JD Stock Wavers After Earnings Report

In premarket trading on the stock market today, JD stock alternated between modest gains and losses.

On Feb. 21,  shares of JD, Alibaba and PDD (formerly Pinduoduo) all fell on a report that JD planned to spend $1.5 billion to create a subsidiary that would target budget-conscious consumers. That raised concerns of rising competition and price wars.

JD stock ranks 10th out of 58 stocks in IBD’s Retail-Internet industry group, according to IBD Stock Checkup. It has a middling IBD Composite Rating of 61 out of 99.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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