JD.com exceeded sales and profit expectations for the second quarter.
JD.com fell prey to China’s Covid-induced economic downturn despite exceeding quarterly sales and profit predictions. Second-quarter revenue was the company’s worst ever.
The retail and logistics divisions of the corporation benefited from the “618” shopping frenzy that took place in June.
More than 4 percent of JD’s stock was added to its value during the early part of the trading session in the United States.
During the months of April through June in 2020, China experienced the worst outbreak of the Covid-19 virus that the virus has seen since it was first disseminated in 2020.
This prompted Chinese authorities to place quarantines on several key cities across the country, including the economic hub of Shanghai.
China’s gross domestic product only expanded by 0.4% on an annual basis during the second quarter of this year.
Investment banks have significantly reduced their growth projections for the economy that is the second biggest in the world.
The recent economic downturn has had an effect not just on JD.com but also on a number of other Chinese technological enterprises.
This month, both Alibaba and Tencent, a rival in the e-commerce industry, announced June revenues that were much lower than typical.