Shares of Chinese e-commerce giant JD.com (NASDAQ:JD) are climbing 3% after the company reported mixed third-quarter results today. Today’s gains continue the positive path that JD stock has been on in recent weeks.
The latter uptrend has been sparked by several factors, including indications that China will ease its anti-coronavirus measures and reduced fears about Chinese stocks being delisted from American stock exchanges.
JD.com’s Mixed Q3 Results
JD reported that its revenue climbed 11% year over year (YOY) last quarter to $34.2 billion. In Q2, JD’s top line rose just 5.4% YOY. So JD’s revenue growth sharply accelerated in Q3.
However, the company’s Q3 sales came in slightly below analysts’ average estimate.
On another positive note, the e-commerce giant’s earnings per share came in at 88 cents, well above analysts’ mean outlook of 63 cents.
Other Positive Catalysts for JD Stock
In recent weeks, reports have indicated that Beijing plans to ease its anti-coronavirus measures. Today, China reportedly made some of the first concrete moves in that direction. Specifically, it reduced the length of quarantine for those infected “from seven days in a state facility to five days, and three days at home,” British medical research firm BMJ reported. Additionally, the government will no longer keep track of citizens’ “secondary contacts,” freeing many people from the need to quarantine at all.
On another front, Reuters on Nov. 16 reported that American regulators were satisfied with the information they had received from Chinese companies whose stocks are traded in the U.S. The report has likely eased fears that the shares of such companies, including those of JD, could be delisted from American exchanges as a consequence of an American law.
In the last month, JD’s shares had rallied 36% as of yesterday’s market close. However, the shares are still down 37% over the last 12 months.
On the date of publication, Larry Ramer held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
