JD Com Stock Plunges 2 86% Amid Surging 780M Dollar Volume Ranking 116th Despite 22 4% Revenue Growth and Strategic Investments

On August 14, 2025, JD.com (JD) closed with a 2.86% decline, trading volume surged 45.49% to $0.78 billion, ranking 116th in market activity. The stock’s performance followed mixed financial results and strategic updates.

JD reported Q2 2025 net revenues of RMB356.7 billion ($49.8 billion), up 22.4% year-on-year, driven by 20.7% growth in product sales and 29.1% in services. However, net income fell to RMB6.2 billion ($0.9 billion) from RMB12.6 billion in Q2 2024, attributed to a 127.6% spike in marketing expenses to RMB27 billion. The core JD Retail segment saw a record 4.5% operating margin amid 20.6% revenue growth, while new businesses like food delivery expanded rapidly, with daily orders exceeding 25 million during the 618 promotion.

Strategic investments in logistics and supply chain innovations, including overseas warehouse expansions and the "Zhilang" automated warehousing system, highlighted long-term growth ambitions. Share repurchases under a $5 billion program totaled $1.5 billion in H1 2025, with $3.5 billion remaining. Despite robust revenue expansion, elevated costs and aggressive market initiatives weighed on profitability, raising questions about short-term margins.

A backtest of a strategy buying top 500 volume stocks and holding for one day from 2022 to 2025 showed a 0.98% daily return, with a total 31.52% return over 365 days, reflecting moderate momentum but market volatility risks.