The Chinese e-commerce giant's revenue grew 29% annually to 134.8 billion yuan ($18.9 billion), clearing estimates by $580 million and marking its second straight quarter of accelerating growth. JD's stock initially rallied after the report on Nov. 15, but it gave up those gains by the end of the day. Yet some investors still seem bullish on the stock, which has rebounded about 60% this year after being cut in half in 2018. JD's growth in annual active customers and revenue decelerated throughout 2018 and the first quarter of 2019 as it seemingly struggled with the economic slowdown in China and competition from rival platforms like Alibaba's (NYSE: BABA) Tmall and Pinduoduo. However, JD's annual active customers grew nearly 10% to 334.4 milion during the third quarter, marking its best growth in four quarters. Those growth rates indicate that consumer demand remains robust across China's lower-tier cities amid the country's economic slowdown and that JD isn't surrendering those oft-overlooked markets to Pinduoduo's group-purchase platform.
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Jan 29, 2020