JD.com, Inc. (JD): A Bull Case Theory

We came across a bullish thesis on JD.com, Inc. on r/valueinvesting by Jordosreddit. In this article, we will summarize the bulls’ thesis on JD. JD.com, Inc.'s share was trading at $29.23 as of January 28th. JD’s trailing and forward P/E were 9.56 and 10.67 respectively according to Yahoo Finance.

JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. JD may be one of the most undervalued quality plays in China today. Unlike many Chinese tech peers, JD operates a fully owned logistics network—including warehouses, trucks, couriers, and drones—giving it control over delivery speed, quality, and customer experience, much like Amazon but with a stronger domestic infrastructure. The company recently announced it expects to exceed its annual profit forecast, yet the market continues to price it like a struggling retailer, creating a notable disconnect between fundamentals and valuation.

Adding to its growth potential, JD is reportedly pursuing the acquisition of Ceconomy, the European electronics retailer behind MediaMarkt and Saturn, which would provide JD with a meaningful foothold in Europe and diversify revenue beyond China. Financially, JD is attractively priced, trading at a forward P/E just above 10 while continuing to grow earnings and generate robust free cash flow. The company maintains a strong balance sheet, has been actively buying back shares, and its logistics arm alone could arguably be worth more than the current market capitalization.

While exposure to China carries inherent risks—regulatory, political, and sentiment-driven—the combination of an expanding profit outlook, operational excellence, and potential European expansion positions JD as a highly asymmetric risk-reward opportunity. For long-term investors, the current pricing appears disconnected from the company’s quality and growth potential, presenting a compelling entry point. In essence, JD.com is a high-quality, Amazon-level operator trading at a bargain, with catalysts that could unlock significant upside as the market begins to recognize its intrinsic value.

Previously, we covered a bullish thesis on JD.com, Inc. (JD) by BlackSwan Investor in March 2025, which highlighted the company’s direct-sales model, fully owned logistics network, operational efficiency, and margin expansion. JD’s stock price has depreciated by approximately 28.26% since our coverage due to China-related headwinds. Jordosreddit shares a similar thesis but emphasizes potential European expansion and market mispricing.

JD.com, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held JD at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of JD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.