Evaluating the Profitability Trade-Off of JD’s Logistics Investments

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JD Logistics, a subsidiary of JD.com, reported an 11% year-over-year revenue growth in Q1 2025, contributing 16.2% to JD’s total revenues. The growth was fueled by internal demand and increasing external client adoption. Heavy investments in automation are being made to enhance scalability, though short-term profitability remains pressured.

JD Property has launched its first overseas logistics asset in Dubai’s Jebel Ali Free Zone as part of efforts to build a global logistics network. Shares of JD.com have declined 24.1% over the past three months, significantly underperforming the broader Zacks Internet – Commerce industry, which grew by 2.5%. Currently, JD.com’s forward P/E ratio stands at 8.01X, well below the industry average of 23.95X.

The consensus estimate for JD’s 2025 earnings is $3.81 per share, which has been revised downwards by 16.9% recently, indicating a year-over-year decline of 10.56%.

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