Is JD a good stock to buy? We came across a bullish thesis on JD.com, Inc. on Emerging Value’s Substack. In this article, we will summarize the bulls’ thesis on JD. JD.com, Inc.’s share was trading at $28.73 as of June 9th. JD’s trailing and forward P/E were 20.99 and 9.65 respectively according to Yahoo Finance.
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JD.com, Inc. operates as a supply chain-based technology and service provider in the People’s Republic of China and Europe. JD continues to execute well in its core retail operations despite headline earnings pressure from its aggressive food delivery expansion. The company’s 2025 results showed that losses from the new food delivery business offset most profits generated by the core segments, as subsidies, elevated operating expenses, and aggressive pricing strategies weighed heavily on margins.
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However, JD’s core retail business remains resilient, with strong growth in logistics, services, marketplace, and marketing revenues, while its retail flywheel continues to strengthen. Although electronics and home appliance sales moderated due to the normalization of prior government subsidies, the company maintained stable operating performance and demonstrated continued customer engagement across its ecosystem. JD also surpassed 700 million annual active customers in 2025, reflecting the scale benefits generated through its expanding platform strategy.
Management expects food delivery investments to decline in 2026 as competition rationalizes and monetization initiatives begin contributing revenue. Chinese regulators have already stepped in to discourage irrational subsidy-driven competition, which could improve industry profitability over time. While the food delivery business remains unprofitable today, JD’s long-term strategy mirrors its historical approach of sacrificing near-term earnings to establish dominant positions in large markets.
The company is also expanding internationally through Joybuy, its European e-commerce platform offering fast local delivery supported by integrated logistics capabilities and synergies from its MediaMarkt acquisition. JD remains financially strong, supported by substantial cash reserves, ongoing buybacks, and dividends. With an enterprise value significantly below its market capitalization and a forward valuation still compressed, JD offers investors long-term upside tied to improving Chinese consumption trends and future normalization of competitive intensity.
Previously, we covered a bullish thesis on JD.com, Inc. (JD) by BlackSwan Investor in March 2025, which highlighted JD’s logistics advantages, trusted retail model, and margin expansion potential. JD’s stock price has depreciated by approximately 29.46% since our coverage. Emerging Value shares a similar view but emphasizes on temporary food delivery losses while remaining optimistic about JD’s resilient core retail business and long-term upside potential.
JD.com, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held JD at the end of the first quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of JD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
