JD.com Falls on Net Loss, Slowest Revenue Growth in Six Quarters

By Dhirendra Tripathi

Investing.com – JD.com ADRs (NASDAQ:JD) traded 7.4% lower in premarket Thursday as it posted a loss in October-December following the slowest pace of revenue growth in six quarters.

Consumer spending slowed while general expenses rose 89%, primarily due to the increase in share-based compensation. Last month, bigger rival Alibaba (NYSE:BABA) posted its slowest revenue growth for the same period since going public in 2014.

JD.com reported a net loss of 5.2 billion yuan (around $820 million) after revenue grew 23% to 276 billion yuan. It had posted a profit of over 24 billion yuan in the same period last year.

Cost of revenue jumped about 24% while market expenses surged over 28%.

Revenue at JD Retail, the unit that accounts for the bulk of the company’s revenue from its website, retail partnerships and retail stores, rose nearly 21%. The logistics business saw revenue jump about 28%.

While most Chinese tech giants were facing the heat from the country’s crackdown last year, JD.com was left untouched and in fact benefited, adding new and returning brands like Starbucks (NASDAQ:SBUX) and Estee Lauder (NYSE:EL) to its platform, according to Bloomberg.

Annual active customer accounts jumped 21% to about 570 million in 2021.

JD.com’s stock is down over 30% in the last year. It has been under pressure also because of a decision by Tencent (OTC:TCEHY), one of its early backers, to distribute its JD.com shares among its shareholders as a one-time dividend.

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