JD.com Stock Rises Despite Profit Decline as Spending Eases
JD.com's shares climbed in premarket trading after the Chinese e-commerce giant reported a sharp drop in third-quarter profit, overshadowed by better-than-expected revenue and signals of reduced spending in its costly food delivery segment. Adjusted profit fell to 5.8 billion yuan ($815 million), less than half of last year's 13.17 billion yuan, while revenue ROSE 15% to 299.1 billion yuan, beating forecasts.
The market welcomed JD's hint of pulling back from subsidy-heavy competition in food delivery, a battleground dominated by Alibaba and Meituan. American depositary receipts gained 4%, offering respite after a 10% year-to-date decline. Investors appear to be rewarding fiscal discipline over growth-at-all-costs in China's tightening consumer landscape.
