Shares of JD.com Inc. JD,
-0.04%
climbed 7.8% in premarket trading on Tuesday after the e-commerce company reported strong profits and revenue as improved user engagement metrics helped offset a “challenging” operating environment “. The company recorded a net loss of 2.99 billion RMB ($472 million), or 1.92 RMB per American Depositary Share (ADS), after net profit of 3.62 billion RMB, or 2, 25 RMB per ADS, one year ago. period. Excluding one-time items, ADS-adjusted earnings of 2.53 RMB were well above the FactSet consensus of 1.65 RMB. Total revenue rose 18.0% to RMB239.66 billion ($37.81 billion), beating the FactSet consensus of RMB235.90 billion. “JD.com’s strong supply chain capabilities and technology-driven operational efficiencies underpinned our strong performance in the quarter as we continued to generate healthy growth in a challenging external environment,” said said general manager Lei Xu. JD stock also benefited from a broad rally in ADS from China-based companies after signs of progress in COVID-19 control efforts. And on Monday, JP Morgan upgraded many China-based internet companies, including JD, from underweight to neutral as significant uncertainties facing the sector begin to fade following recent regulatory announcements. . JD’s stock fell 26.5% year-to-date through Monday, while iShares MSCI China ETF MCHI,
-0.19%
lost 23.2% and the S&P 500 SPX,
-0.39%
lost 15.9%.