11 Cheap NASDAQ Stocks to Buy According to Hedge Funds

8. JD.com Inc. (NASDAQ:JD)

Forward P/E Ratio as of April 21: 7.49

Number of Hedge Fund Holders: 78

JD.com Inc. (NASDAQ:JD) is a supply chain-based technology and service provider that operates through three segments: JD Retail, JD Logistics, and New Businesses. It offers computers, communication, and consumer electronics products, as well as home appliances and general merchandise products.

The company’s Electronics and Home Appliances category experienced a significant 16% year-on-year surge in Q4 2024 revenue, which contributed substantially to JD.com’s overall 13% year-on-year net revenue growth to RMB 347 billion. This growth is fueled by a well-established and efficient supply chain at JD.com Inc. (NASDAQ:JD). The company also has comprehensive service capabilities that enhance customer satisfaction and loyalty.

For the entire year of 2024, the Electronics and Home Appliances segment showcased a 5% year-on-year revenue increase, which was a good portion of the company’s total annual revenue of RMB 1.2 trillion, which was up 7%. Favorable government stimulus policies designed to boost domestic consumption are expected to further strengthen the Electronics and Home Appliances category.

Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:

“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”