Is JD.com (JD) a Cheap NASDAQ Stock to Buy According to Hedge Funds?

We recently published a list of the 11 Cheap NASDAQ Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where JD.com, Inc. (NASDAQ:JD) stands against other cheap NASDAQ stocks.

On April 10, Dan Ives, Head of Global Tech Research at Wedbush Securities, appeared on an interview at CNBC and expressed that the tech sector could be heading into a period of major volatility. Dan Ives addressed the current landscape for technology companies and pointed out that while a temporary pause in tariffs has provided some structure, the sector remains uncertain in general. He noted that even with this framework, large tech purchases are still being downsized or paused, which contributes to ongoing volatility, especially as companies approach earnings season. Many tech firms are either withholding guidance or providing only general outlooks. Ives described the situation as a storm whose full damage is only beginning to be assessed, with the industry still only a quarter of the way through the fallout. He explained the sharp pullback in major tech stocks by likening it to emerging from a storm and confronting the resulting damage.

Ives highlighted that the uncertainty in tech has been amplified by the escalating tariffs on China, which are now as high as 125%, and are a major concern for a lot of companies, as China remains central to the global tech supply chain. Ives also pointed out that the recent tariffs on China have forced companies to reconsider the costs and logistics of importing critical components. For example, a $100,000 part might now cost double due to tariffs, causing companies to halt or delay large investments. This has resulted in a notable pause in tech spending, which he expects to continue at least through the current quarter. He cautioned that the June quarter is likely to be very weak. He maintained that, despite the challenges, he has not downgraded tech stocks, drawing on lessons from the pandemic playbook, where periods of uncertainty eventually led to clear winners and losers. Ives also addressed concerns that tech companies, by pulling back on spending, might risk drawing negative attention from the administration, especially given recent meetings between tech CEOs and the president. He reiterated that China is the epicenter of the current turmoil and that big tech is caught in the middle of a high-stakes situation, with companies still trying to navigate the evolving landscape.

Ives predicted that Street estimates are likely to see earnings cuts of about 10% across internet and big tech companies, which reflects the broader pullback in spending and ongoing volatility.

Our Methodology

We first used the Finviz stock screener to compile a list of cheap NASDAQ stocks that had a forward P/E ratio under 15 as of April 21. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.

Note: All data was sourced on April 21.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

JD.com, Inc. (NASDAQ:JD)

Forward P/E Ratio as of April 21: 7.49

Number of Hedge Fund Holders: 78

JD.com, Inc. (NASDAQ:JD) is a supply chain-based technology and service provider that operates through three segments: JD Retail, JD Logistics, and New Businesses. It offers computers, communication, and consumer electronics products, as well as home appliances and general merchandise products.

The company’s Electronics and Home Appliances category experienced a significant 16% year-on-year surge in Q4 2024 revenue, which contributed substantially to JD.com’s overall 13% year-on-year net revenue growth to RMB 347 billion. This growth is fueled by a well-established and efficient supply chain at JD.com, Inc. (NASDAQ:JD). The company also has comprehensive service capabilities that enhance customer satisfaction and loyalty.

For the entire year of 2024, the Electronics and Home Appliances segment showcased a 5% year-on-year revenue increase, which was a good portion of the company’s total annual revenue of RMB 1.2 trillion, which was up 7%. Favorable government stimulus policies designed to boost domestic consumption are expected to further strengthen the Electronics and Home Appliances category.

Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:

“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”

Overall, JD ranks 8th on our list of the cheap NASDAQ stocks to buy according to hedge funds. While we acknowledge the growth potential of JD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.