What happened

Shares of JD.com (JD -2.60%) were climbing for the second day in a row as analysts responded positively to the company's third-quarter earnings report yesterday, which sent the stock up 6% Thursday.

Today, the stock gained another 3.9%.

JD Founder Richard Liu delivering a package.

Image source: JD.com.

So what

Several analysts raised their price target on the stock this morning in response to a solid earnings beat yesterday and broad momentum in the business. 

UBS's Jerry Liu raised his price target from $95 to $110, touting the company's unique e-commerce model, including its integrated supply chain, logistics, and direct sales model. Benchmark analyst Fawne Jiang raised her price target on the stock from $102 to $117, and said the company would continue to take market share, adding that its "unique value proposition warrants its outperformance."

JD's strong quarter was a notable contrast to rival Alibaba, which slashed its 2022 outlook yesterday sending its shares down double digits.

Now what

Compared to Alibaba, JD is also facing less pressure from the Chinese government, and its primarily direct-selling model seems safer from regulatory oversight. Alibaba, on the other hand, has been fined for putting restrictions on some of its vendors, including not allowing them to sell on other marketplaces.

While investors should be aware of tightening government regulations on Chinese stocks, both companies should benefit from a massive and growing e-commerce market. JD said in its earnings report that its active customer count had grown 25% to 552 million, and that's not even half of the Chinese population.