The Internet platform JD.com’s growth decreased but remained in double digits

JD.com Inc. (JD), a Chinese e-commerce specialist, announced its first-quarter earnings. The company’s growth has slowed significantly, but it is still in the double digits. JD’s shares were valued at $53.67 in the May 17 auction. In terms of profit and sales, JD.com outperformed analysts in the first quarter.

Year on year, sales increased 18% to $37.8 billion.Although this is the company’s slowest growth rate since its IPO, it is still better than Wall Street’s projections. It’s worth noting that e-commerce has JD.com’s growth has slowed for the second quarter in a row. For example, it was just 21% year over year in the fourth quarter. The management then indicated that poor consumer demand and tough competition are the primary causes of the slowdown in growth. JD.com made non-GAAP profits of $0.4 per share, which was a lot more than the average analyst prediction of $0.24 per share.

JD.com’s major development drivers are established supplier networks and strong technology-based productivity. Investors were generally optimistic about JD.com’s quarterly report, but cautioned about the existing COVID limitations in China. The government has adopted COVID-19’s stringent zero tolerance policy, which includes city lockdown in certain areas. In April, China’s retail commerce dropped 11% due to restrictions.

Because investors are more inclined to buy shares of Chinese firms, we may see a resurgence in activity in the coming weeks. It is critical that JD.com maintains its diversification strategy. Despite the fact that logistics services are still unprofitable, they currently account for at least 11% of the company’s revenue. JD.com’s business division is rapidly expanding.