China internet giant JD.com (JD) reported second-quarter results early Monday that beat expectations as revenue jumped 26%. JD stock initially fell, then reversed.
JD, which competes with Alibaba (BABA) and other e-commerce companies, reported revenue of $39 billion, above expectations of $38.2 billion. It reported adjusted earnings of 45 cents a share, vs. expectations of 40 cents.
JD stock initially fell 1.4% during morning trading. Shares turned it around and climbed 3.3% to close at 65.73 on the stock market today.
Active annual customers jumped 27% to 532 million. The addition of 32 million new users was the company’s largest quarterly increase in its history.
China stocks have been hammered this past year as China government regulators have issued a string of new rules aimed at banning unfair competition.
JD Stock Down 43% From High
JD stock hit a record high of 108.29 set on Feb. 17, now down 40%.
Alibaba, after hitting a record high of 349.32 in October, has fallen roughly 54% from that peak. Also, Tencent is down 43% from its high of 99.40 in February. JD stock trades near a one-year low.
Among the new rules outlined by regulators, China internet companies should not conceal negatives reviews and only promote positive ones. In addition, operators also should not use data and algorithms to collect and analyze competitors’ trading information.
“We are pleased to deliver another quarter of healthy growth even compared to last year’s high base,” said Sandy Xu, JD chief financial officer, in written remarks. “We are also encouraged by the continued diversification of our revenue streams, reflecting our open ecosystem strategy of empowering customers and business partners through JD.com’s supply chain-based technology and infrastructure.”
JD stock has an IBD Composite Rating of 53 out of a best possible 99.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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