Why Did JD.com Soar 5% Pre-Market?

On April 11, 2025, JD.com, Inc. (JD) saw a significant pre-market rise of 5%, indicating strong investor confidence in the company's recent performance and future prospects.

JD.com's recent financial results have been particularly impressive. The company reported a 13.4% year-over-year increase in revenue for the fourth quarter of 2024, driven by robust growth in electronics and home appliances. This strong performance has been attributed to deep discounts and price cuts that encouraged robust consumer spending, despite an extended slump in Chinese consumer spending.

Analysts have also noted that JD.com's stock is significantly undervalued, trading at a forward price/sales ratio of 0.38x, suggesting strong upside potential compared to its U.S. rivals. This undervaluation, combined with the company's strong financial performance, has led to a positive outlook from several analysts. Jefferies, for instance, maintained a Buy rating and a $64.00 price target for JD.com, while Morgan Stanley forecasted double-digit revenue and net profit growth for the first quarter of 2025.

Additionally, JD.com's strong performance has been bolstered by government consumption subsidies, which have boosted revenue growth, especially in electronics and home appliances. The company's management is optimistic about 2025, expecting continued growth driven by these subsidies and strong consumer demand.