Please ensure Javascript is enabled for purposes of website accessibility

Why JD.com Stock Moved Higher Friday

By Daniel Sparks - May 10, 2019 at 5:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Chinese e-commerce company just crushed estimates for its first quarter.

What happened

Shares of China-based e-commerce company JD.com (JD 2.69%) shot higher on Friday, rising as much as 10.8%.

The stock's gain follows JD.com's better-than-expected first-quarter results. But worries about the ongoing trade negotiations between the U.S. and China offset some of this gain, and shares finished the trading day up 2.4%.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

JD.com reported revenue of 121.1 billion Chinese renminbi (RMB), or $18 billion. This revenue was up 21% year over year in local currency. Non-GAAP net income soared 215% year over year. Non-GAAP earnings per American depository shares (ADS) for the first quarter were 2.23 RMB, or $0.33.

Both of these figures beat analysts' average forecast for revenue and non-GAAP earnings per share of $17.7 billion and $0.12, respectively. 

"We delivered solid revenue growth in a seasonally low quarter and set new records across all major earnings metrics," said JD.com CFO Sidney Huang in the company's first-quarter earnings call.

So what

Management was optimistic about what's ahead for the company.

"We will continue to invest in key technologies and top industry talent as we work to reach an even broader customer base through cutting edge innovation," said JD.com CEO Richard Liu in the company's first-quarter earnings release. "With our growing scale and increasingly efficient operations, JD.com remains well positioned to deliver strong shareholder value for the long term."

For its second quarter, JD.com guided for revenue to rise 19% to 23% year over year in local currency.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JD.com, Inc. Stock Quote
JD.com, Inc.
JD
$65.95 (2.69%) $1.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.