Shares of JD.com (JD 3.39%) climbed as much as 3% as of 11 a.m. ET on Monday. The move came as investors reacted to fresh headlines about an initial public offering (IPO) for JD's industrial services subsidiary, while U.S. equities also drifted higher to start the week.
IPO chatter
Reuters reported that JingDong Industrials (JDi) -- JD's supply chain and industrial technology arm -- aims to raise roughly $500 million in a Hong Kong listing for the IPO as soon as late October, with banks including Bank of America, Goldman Sachs, Haitong, UBS, and Huatai on the ticket.
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JDi posted 18.9% year-over-year revenue growth in the first half of 2025 and remains majority-owned by JD.com, so listing plans can sharpen the market's view of the parent company's sum-of-the-parts value and provide capital for expansion.
At the same time, U.S. stocks were broadly rising on Monday morning, with the S&P 500 and Nasdaq both advancing, creating a supportive backdrop for large-cap tech and Chinese American depositary receipts. There may also be some lingering optimism after an analyst upgrade late last week that boosted JD.com's rating and price target.
Valuation and the long view
Even with today's bump, JD.com's valuation remains undemanding relative to history and peers. Recent snapshots put the stock near a price-to-earnings multiple of just 10 and a price-to-sales multiple of only 0.3, with market capitalization near $50 billion. That's not exactly rich for a scaled e-commerce operator with improving growth trends.
The near-term risk is execution -- both in core retail amid stiff competition and in unlocking value from non-retail assets like JDi. That said, if the industrial unit floats successfully and operating momentum holds, investors would have more clarity -- and potentially a higher look-through valuation for the stock.
Overall, JD.com stock has improving fundamentals, but it is still priced for skepticism.
