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JD.com Earnings Are Coming. Food-Delivery Costs Are the Big Question.

1. JD.com's adjusted net profit is forecasted to plunge to 4.23 billion yuan. 2. Third-quarter revenue is expected to rise 13% to 294.81 billion yuan. 3. Intense subsidy spending in the e-commerce sector is eroding profit margins. 4. JD's food delivery venture has incurred additional costs affecting profitability. 5. Analysts predict subsidy intensity will ease in upcoming quarters.

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FAQ

Why Bearish?

The significant drop in profit alongside ongoing losses due to subsidy spending indicates weakened performance, akin to prior downturns seen in the retail sector during intense competitive periods.

How important is it?

The financial indicators provided are critical for JD, impacting investor confidence significantly in the near term.

Why Short Term?

Immediate concerns over profit margins and competitive pressure are likely to affect JD's stock in the short term, similar to past quarterly reports that influenced market perceptions quickly.

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