Are JD’s Logistics Investments Worth the Profitability Trade-Off?

From Nasdaq: 2025-06-05 13:08:00

JD Logistics, a crucial arm of JD.com, reported 11% revenue growth in Q1 2025, contributing 16.2% of total revenues. Despite short-term profitability challenges from heavy investments, upgrades in automation aim for long-term scalability. JD Property launched its first overseas logistics asset in Dubai to enhance global trade and support international growth.

JD Logistics competes with Alibaba’s Cainiao and Amazon Global Logistics. Cainiao, established in 2013, offers global logistics services, while Amazon’s service provides cost-effective ocean shipping from China to Amazon’s warehouses.

JD.com’s stock has declined 24.1% in the past three months. With a forward P/E ratio of 8.01X (compared to the industry’s 23.95X), it has a Value Score of B. Estimates show a 10.56% year-over-year decline in earnings for 2025, with a Zacks Rank #4 (Sell).

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