On Thursday, JD.com shares experienced a sharp drop after the Chinese e-commerce giant reported fourth-quarter earnings that topped expectations set by analysts but amidst slow sales growth.
U.S listed shares of JD.com (ticker: JD) dropped 17% on Thursday to $51.78 after the company reported a net revenue in the quarter of 275.9 billion yuan ($43.3 billion), a 23% gain from a year earlier. Adjusted earnings stood at 2.8 billion yuan, in comparison to the 1.2 billion yuan a year earlier.
Adjusted earnings per ADR were 2.21 yuan (35 cents) when compared with 1.49 yuan for the same quarter in 2020. According to analysts at FactSet, JD.com was expected to report earnings of 28 cents a share on revenue of $43.5 billion. A year ago, the company earned an impressive 23 cents a share on revenue of $34.6 billion.
The company reported an increase in the annual active customer accounts in 2021, which rose by nearly 21% to 569.7 million but fell short of Wall Street forecasts.
Like Alibaba.com (ticker: BABA), JD.com has suffered as a result of the crackdown on Chinese technology companies by regulators. JD.com’s reported a revenue growth in the fourth quarter that was merely 23% of its previous quarter’s performance that stood at a 25% gain in third-quarter sales.
Alibaba reported its slowest revenue growth performance last month, a performance previously unseen since the company went public nearly a decade ago.