JD Coms 038 Rise Fails to Boost 227th Trading Volume Rank Amid Food Delivery Struggles

On August 15, 2025, JD.com (JD) rose 0.38% to $31.58, with a trading volume of 0.44 billion, down 43.48% from the previous day. This marked a modest recovery despite broader market volatility. The stock ranked 227th in trading volume among listed companies, reflecting mixed investor sentiment amid strategic shifts and operational adjustments.

Benchmark Securities lowered its price target for JD to $42 from $47, maintaining a "Buy" rating. The firm cited JD’s Q2 2025 performance, which included a 22.4% revenue increase to RMB 356.7 billion but a halved net income to RMB 6.2 billion due to aggressive investments in food delivery. Analysts highlighted ongoing margin pressures as the company prioritizes growth in new ventures, particularly JD Takeaway, which faces intense competition from Meituan and Alibaba’s Ele.me.

JD’s core retail segment showed resilience, with a 4.5% operating margin—the 13th consecutive quarter of expansion—driven by supply chain automation and 130+ warehouse investments. However, the food delivery segment remains a key risk, with projected losses of RMB 34 billion in 2025. These losses could strain cash reserves and delay profitability, which analysts expect by 2026. Regulatory scrutiny of price wars and the high cost of scaling delivery staff (1.2 million full-time riders) further complicate growth prospects.

Strategic initiatives, including the proposed $2.5 billion acquisition of Germany’s Ceconomy and expansion of JoyExpress in Saudi Arabia, aim to bolster JD’s global logistics network. While these moves could enhance cross-border e-commerce capabilities, they also introduce execution risks. Analysts remain divided, with Citigroup and Spark maintaining "Buy"/"Outperform" ratings at $42–$46, while others caution that food delivery losses may erode operating profits by 36% in 2025.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a 1-day return of 0.98% and a total return of 31.52% over 365 days. This highlights the potential of short-term momentum strategies but also underscores market volatility and timing risks inherent in such approaches.