JD.com Stock Plunge 2.85% Post-Q3 Earnings as Strategic Reinvestments Weigh on Profits

The share price fell to its lowest level since August 2025 today, with an intraday decline of 3.42%.

JD.com’s stock has dropped 2.85% over two sessions as investors reacted to its Q3 2025 earnings. The e-commerce giant reported a 14.9% year-over-year revenue increase to RMB299.1 billion, driven by service growth and retail expansion, but net income fell 53% to RMB5.3 billion. The profit decline stemmed from strategic reinvestments in food delivery, AI healthcare, and global logistics, alongside aggressive consumer promotions. Despite a premarket rally following revenue and EPS beats, shares have since slid to a 10-month low, reflecting investor concerns over margin compression and capital expenditures.

JD’s aggressive diversification into logistics, healthcare, and fresh food services has strained short-term profitability, with operating margins turning negative. While its Dubai warehouse and Singapore-Shenzhen air routes signal long-term global ambitions, the stock faces pressure from competitive pressures in e-commerce and regulatory constraints. Share repurchases under a $5 billion buyback plan and a P/E ratio near historical lows suggest undervaluation, but sustained growth will depend on balancing expansion costs with profitability. Analysts remain cautiously optimistic, citing the company’s liquidity and innovation-driven strategy, though near-term volatility is likely amid ongoing strategic reallocation.

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