Beijing-headquartered JD.com [JD] is a Chinese e-commerce firm and a direct competitor of diversified giants Alibaba [BABA], PDD Holdings [PDD] and Meituan [MPNGY]. However, as its peers have attracted investor attention for forays into new fields such as artificial intelligence (AI), JD.com has remained relatively stagnant, generating the majority of its revenue from its online retail business. 

That could be about to change, however. 

Founder Richard Liu recently announced an ambitious turnaround plan, and the company could be set for major revamp. In this article, we investigate JD.com recent financial performance and unpack whether the company’s darkest period is truly over.

In a rare press conference on June 18, held during the company’s annual shopping festival, Liu announced plans to speed up JD.com’s overseas expansion and diversification, describing the past half-decade as “the most unremarkable and least-valuable five years in my entrepreneurial history”.

A key part of this expansion plan is an increased focus on fields such as food delivery and travel, relying on its established logistics networks for expansion. Liu has also called out competitors, branding his company the “anti-PDD”, rejecting the focus on cheap products that has underpinned the success of PDD’s Temu e-commerce platform. 

In a process analogous to the price wars wracking China’s electric vehicle market, food delivery competition has proven costly for JD.com and Meituan, its primary competitor in the space. Both firms lost a combined $100bn in market value between late 2024 and the end of May 2025, even as peers pivoted toward AI-fuelled productivity gains. JD.com has handed out RMB10bn in user subsidies and offered above-industry benefits for delivery riders in a cash-burning approach to increasing market share. 

On the international front, JD.com is expected to launch its e-commerce platform in Europe in 2026, having spent three years developing infrastructure on the continent. 

The company is also eyeing the burgeoning stablecoin space, aiming to apply for stablecoin licenses “in all major sovereign currency countries in the world” following the passage of the US’ GENIUS Act. The use of the digital asset would “reduce payment costs by 90% and deliver within 10 seconds”, Liu said at the June 18 shopping festival. 

Key players in the wider Chinese e-commerce market saw a slump in share prices following a peak in 2021, although increased investor interest and tech investment have supported a slight return in the year to date, even amid tariff-fueled volatility. 

JD shares fell considerably from the dizzying all-time high of $108.29 reached on February 17, 2021, languishing in the $20–30 range for much of 2024. Shares surged in October 2024, with wider market optimism and impressive Q3 2024 earnings helping the stock maintain momentum. JD stock dipped in early April amid the announcement of US President Donald Trump’s tariffs. Solid Q1 2025 earnings and Liu’s turnaround plan have both failed to move the needle. 

As of June 23, JD stock was up 15.71% in the past 12 months, but down 6.21% in the year to date. 

JD.com’s Q1 2025 earnings report on May 13 emphasized growth momentum, an expanding footprint in the food delivery market and increased AI integration. Revenue grew 16% year-over-year to reach RMB301bn, outpacing estimates. EPS for the quarter was $1.17, a beat of $0.18 over analyst targets. Free cash flow, however, declined from RMB61bn in Q1 2024 to RMB38bn in Q1 2025, reportedly due to ongoing investments and efforts to meet “robust consumer demand”.

JD.com’s biggest competitor in the food delivery space, Meituan has seen success in overseas expansion, with existing operations in Saudi Arabia and a $1bn investment announced on May 13 marking its entry into the Brazilian market. The company reported revenue increasing 18.1% year-over-year to RMB86.56bn in the quarter ending March 31, 2025, as well as an impressive 102.8% rise in operating profit. 

PDD Holdings, which announced Q1 2025 earnings on May 27, missed both EPS and revenue estimates, delivering an earnings miss of over $1.00. Revenue for the quarter rose 10% year-over-year to RMB95.67bn, while operating profit and net income attributable to shareholders fell 38% and 47%, respectively. The company has struggled to cope with US import tariffs on online retailers, recently imposing shipping fees on products sold on Temu. 

Here are how the fundamentals of the three companies compare:

Source: Stockanalysis.com

With the company positioning itself for a makeover, proponents of the bull case for JD stock have pointed to its strong financial position, with four straight quarters of sales growth. A new hotel membership program and ongoing incentives for food delivery customers are helping it push into new territories. Additionally, there is the potential to convert customers between JD.com’s different segments, with founder Liu claiming that 40% of the company’s new food delivery users have converted into e-commerce customers. 

The company also remains China’s largest e-commerce retailer by overall revenue, and its substantial logistics network could prove a key piece in its diversification efforts. Of the 37 analysts surveyed by Yahoo Finance in June, seven rate the stock a ‘strong buy’, while 27 rate the stock a ‘buy’. Following Q1 2025 earnings, a number of investment firms, including Citi and Jefferies, raised their target price for the stock. 

Jefferies analyst Thomas Chong maintained a ‘buy’ rating for JD, with a target price of $66.00 representing an upside of 108.93% from the June 23 close. Chong outlined that the company’s upcoming milestone of 20 million daily food delivery orders and a focus on user experience and scale represent key indicators of growth potential. 

That said, a number of headwinds could throw a wrench into Liu’s ambitious turnaround plan. Continued economic volatility is an important factor, with trade tensions a potential obstacle to international expansion. The stock could also face delisting in the US, should US-China relations deteriorate further. Increasing competition with Meituan and PDD could impact financial health, as each firm undercuts prices to court customers. 

Additionally, the company’s shrinking cash flow represents a struggle to keep up with demand, as well as investments that may not benefit investors in the short term. According to Seeking Alpha, JD is showing warning signs that have historically led to cutting dividends, which could lead some investors to reconsider its place in their portfolio.

Following Q1 results, Susquehanna lowered its target price from $45.00 to $40.00, retaining a ‘neutral’ rating, citing macroeconomic uncertainties despite strong fundamentals. This target price still represents an upside of 26.62% on the June 23 close, however. Of the 37 analysts surveyed by Yahoo Finance in June, 3 rated it a ‘hold’.

Expansion into the travel and food delivery segments could galvanize growth for JD.com, with founder Liu unveiling a turnaround plan to put the company on more even footing with its competitors. Despite strong financial health, however, wider macroeconomic volatility and a slowdown of consumer spending in China could stop the plan in its tracks.