Shares of JD.com, Inc. (NASDAQ:JD), one of the largest online retailers in China, rose by 5.17% in March, according to data provided by S&P Global Market Intelligence, following an impressive fourth quarter by the company and on news that JD's business was doing relatively well despite the coronavirus pandemic.
JD.com was one bright spot among many Chinese companies last month as its stock price rose at the beginning of the month thanks to the company's better-than-expected fourth-quarter results. JD's sales increased 26% year over year to $24.5 billion, outpacing analysts' consensus revenue estimate of $23.9 billion. The company's stock jumped 12% on that news, though it gave up some of those gains later in the month.
Aside from the strong fourth quarter, investors also appeared to be optimistic about how the company was dealing with the coronavirus outbreak. As an online retailer that delivers products directly to Chinese citizens hunkered down in their homes, JD's business was uniquely able to continue functioning during the country's lockdown.
JD's chief financial officer, Sidney Huang, said on the company's fourth-quarter earnings call that
JD.com was able to resume full operations very quickly after the Chinese New Year, and has been in a unique position to provide broad product selection and uninterrupted timely service to our customers in most parts of the country, as people turned to e-commerce for daily groceries and other necessities.
JD's share price has climbed about 1% in April, as of this writing. While it's still unclear how the company's stock will perform as the broader stock market remains highly volatile, it's clear that JD's e-commerce business has something to offer many Chinese consumers during the coronavirus crisis.
That may help the company continue to grow during these uncertain times. Still, investors should keep a close eye on JD.com and how it responds to the continuing economic impact COVID-19 will have on the Chinese economy.