Best known for his contrarian strategies and starring role in The Big Short, legendary investor Michael Burry has a talent for identifying market-beating opportunities. While his reputation was built on bold bets against the housing market, his recent moves highlight a shift toward high-conviction investments in undervalued, industry-leading companies.
Among Burry’s latest picks revealed in Scion Asset Management’s third-quarter 13F filing, JD.com (JD) stands out as a "Strong Buy" stock poised for significant gains in 2025. As China’s second-largest e-commerce player, JD.com has built an ecosystem that combines logistics excellence with a robust technological foundation, setting it apart from competitors.
For investors seeking to align with one of Wall Street’s sharpest minds, here’s a closer look at why JD.com could deliver long-term growth and resilience, making it a compelling addition to any portfolio.
About JD Stock
Founded in 1998, JD.com is a leading Chinese e-commerce company known for its strong logistics network and advanced technology. Its logistics arm, JD Logistics, is transforming the supply chain industry with innovative tools like artificial intelligence (AI), automation, and the Internet of Things (IoT). The use of robots, drones, and real-time data helps improve efficiency and cut costs. The company is also focusing on sustainability by using electric delivery vehicles and solar-powered warehouses. With the addition of 5G technology, JD Logistics is solidifying its leadership in China’s fast-growing logistics market, making it an exciting option for investors looking for future growth.
Valued at a market cap of around $51 billion, shares of JD have delivered decent returns, gaining 34% over the past 52 weeks and outperforming the broader S&P 500 Index's ($SPX) 25% rise in the same period. This growth underscores JD’s ability to compete in a highly competitive market that includes big players like Alibaba (BABA).
Moreover, investing in this e-commerce company also offers a generous dividend opportunity. JD began paying dividends about three years ago, and its current quarterly payout stands at $0.76 per share, yielding 2.3% at current levels.
JD Beats Estimates in Q3
On Nov. 14, the Chinese e-commerce company posted its third-quarter earnings for 2024, shattering Wall Street expectations. Revenue came in at $37.1 billion, beating analyst estimates by $5.6 million and representing a 5.1% year-over-year increase. Despite macroeconomic headwinds and lagging consumer sentiment recovery in certain segments, the company’s growth was evident in its general merchandise segment, which was up 6.5% YOY, while product revenues rose 4.8% during the same period.
Profitability remains robust and exceeded expectations. In Q3, net income surged 47.8% YOY to $1.7 billion, translating to a net margin improvement from 3.2% to 4.5%. Non-GAAP EPS of $1.24 also saw a robust rise of 29.5%.
During the earnings call, CEO Sandy Xu highlighted the company’s ability to leverage its advanced supply chain capabilities and logistics partnerships, including collaboration with Alibaba’s Taobao and Tmall, as critical growth drivers. CFO Ian Su Shan noted that JD.com’s gross and operating margins benefited from economies of scale, achieving a 5% non-GAAP operating margin.
Looking ahead, JD reaffirmed its full-year revenue guidance of $157 billion with an estimated EPS range of $4.11 to $4.48. Analysts project 6.7% YOY revenue growth in Q4, which will be helped by the company’s Singles Day promotions and ongoing user engagement initiatives. These factors position JD.com for sustained financial momentum into 2025.
Recent News About JD
On Jan. 3, 2025, JD.com launched its New Year’s Goods Festival, offering significant discounts on Apple products. Deals include up to 2,500 yuan off the iPhone 16 series, trade-in subsidies, and national discounts of up to 20% on select Macs. This campaign positions JD.com as a competitive marketplace, attracting tech-savvy consumers and boosting sales during the festive season.
On Nov. 1, JD.com’s international e-commerce division, JD Global Sales, announced its expansion into Malaysia and Thailand. It offers consumers access to extensive product selections and exclusive benefits for Singles Day, including free shipping options tailored to each market. This strategic move strengthens JD.com’s global presence, enhancing customer experience and driving higher sales during major shopping events.
What Do Analysts Think About JD Stock?
Citi analyst Alicia Yap recently maintained a “Buy” rating on JD.com and gave a $51 price target, citing its leadership in extending 2025 trade-in programs across key provinces like Hubei, Jiangsu, and Hunan. The initiative, covering 200+ sub-categories and 90% of counties, leverages JD’s first-party supply chain and omnichannel reach via JD Mall and appliance flagship stores.“ JD.com’s comprehensive platform and early mover advantage in trade-in programs position it for robust GMV and revenue growth in early 2025,” Yap said. With annual revenues of $159.3 billion and a market cap of $49.62 billion, JD.com’s strategic partnerships with local governments signal potential upside risks to consensus estimates, underscoring its market strength.
Overall, Wall Street analysts are highly optimistic about JD stock’s future. The bullish group consists of 17 analysts with a consensus “Strong Buy” rating. The average 12-month price target of $47 implies 43% upside from current prices.
