JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.

JD.com, Inc.

Key Points
Alibaba dominates China’s e-commerce and cloud markets.
Tencent owns the country’s top “super app” and gaming business.
One of these tech titans has a brighter future.
Alibaba (NYSE: BABA) and Tencent (OTC: TCEHY) are two of China's largest tech companies. Alibaba owns the country's largest e-commerce marketplaces and top cloud infrastructure platform. Tencent owns China's largest social media platform, one of the country's leading cloud infrastructure platforms, and the world's largest video game publishing business. Both companies are expanding their artificial intelligence (AI) ecosystems with new large language models (LLMs), generative AI applications, and autonomous driving services.
Both stocks might appear to be reliable investments in China's economic expansion. Yet, over the past five years, Alibaba's stock has declined by nearly 40%, while Tencent's stock has risen by only 6%. They lost their luster as China's economic growth cooled off, they faced intense scrutiny from antitrust regulators, and the trade war curbed the market's appetite for Chinese equities. Should you invest in either of these out-of-favor Chinese bellwethers today?
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Alibaba's high-growth days are over
Alibaba generates most of its revenue and profits from its two most significant Chinese marketplaces, Taobao and Tmall. A smaller slice of its revenue comes from its cloud infrastructure business, which operates at lower margins than its e-commerce marketplaces.
In 2021, China's antitrust regulators barred Taobao and Tmall from locking in their merchants with exclusive deals, using loss-leading promotions to gain new customers, and expanding with unapproved investments and acquisitions. Those restrictions throttled its growth and eroded its defenses against its top competitors, PDD (NASDAQ: PDD) and JD.com (NASDAQ: JD).
That pressure forced Alibaba to rely on its overseas marketplaces (including Lazada in Southeast Asia, Trendyol in Turkey, Daraz in South Asia, and AliExpress for cross-border purchases) and its Cainiao logistics business to drive its top-line growth. However, that strategy compresses its margins because those faster-growing businesses are still unprofitable.
From fiscal 2025 (which ended in March 2025) to fiscal 2028, analysts expect Alibaba's revenue and earnings per share (EPS) to grow at a CAGR of 8% and 11%, respectively. Its high-growth days are over, but it could stabilize Taobao and Tmall with AI-driven recommendations, new merchant tools, and logistics upgrades over the next few years. It also expects the AI boom to generate strong tailwinds for its cloud infrastructure business. The stable growth of its e-commerce and cloud businesses could free up more resources to expand its lower-margin international marketplaces and Cainiao's new third-party logistics services.
Tencent faces similar challenges
Tencent's core growth engine is WeChat (known as Weixin in China), a "super app" which bundles together messaging, news, e-commerce, payment, and gaming features for more than 1.41 billion monthly active users (MAUs). Its other main growth engine is its video game business, which publishes titles such as Honor of Kings, PUBG Mobile, Call of Duty: Mobile, League of Legends, Clash of Clans, Pokémon Unite, and other hit games.
WeChat remains a vital app for everyday life in China, but it faces fierce competition from ByteDance's Douyin (known as TikTok overseas) and other rapidly growing apps. Meanwhile, China's government regulators are tightening their grip on its booming video game market by approving fewer titles and implementing playtime restrictions for minors. Those regulatory headwinds curbed the growth of Tencent's gaming business.
To offset that pressure, Tencent is expanding its higher-growth fintech and business services segment, which houses its WeChat Pay digital payments platform, Tencent Cloud infrastructure platform, and other enterprise-oriented services. It's also upgrading its targeted ads with new AI algorithms to squeeze more revenue from WeChat's existing users and expanding its overseas gaming business to reduce its dependence on the Chinese market.
Those new strategies are helping to stabilize Tencent's revenue and earnings growth. From 2024 to 2027, analysts expect its revenue and EPS to grow at a CAGR of 11% and 15%, respectively. The integration of its LLM into more WeChat ads, gaming, and enterprise features -- along with the growth of its gaming and cloud businesses -- should drive that growth.
Which stock is a better value?
Alibaba and Tencent are trading at 17 times and 20 times their next year's earnings, respectively. Alibaba might seem cheaper, but it's also growing at a slower rate and faces more formidable competitors in its core e-commerce market. Tencent also faces competitors in the advertising and gaming markets, but WeChat is still an irreplaceable app for its core Chinese users.
Both stocks could attract more investors if the trade tensions between the U.S. and China ease. However, Tencent seems like a more stable growth play than Alibaba -- which still needs to carefully expand its higher-growth businesses without crushing its own margins.
Should you buy stock in Alibaba Group right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Stock to Buy Right Now: Alibaba vs. Tencent

Key Points
Added 298,584 shares of Kanzhun Limited, raising stake by an estimated $57.48 million
Transaction equates to 0.7045% of CoreView's reportable AUM
Post-trade stake: 9,447,889 shares valued at $220.70 million
Kanzhun Limited now represents 24.27% of CoreView's AUM, making it the fund’s 1st-largest holding
What happened
According to a filing with the Securities and Exchange Commission dated November 13, 2025, CoreView Capital Management Ltd bought 298,584 additional shares of Kanzhun Limited (NASDAQ:BZ). The post-trade position totals 9,447,889 shares, valued at $220.70 million as of September 30, 2025. This action brought Kanzhun Limited to 24.27% of CoreView’s reportable U.S. equity assets.
What else to know
CoreView increased its stake in Kanzhun Limited, which now accounts for 24.27% of 13F AUM
Top holdings after the filing:
NASDAQ: BZ: $220.70 million (24.27% of AUM)
NASDAQ: JD: $216.79 million (23.9% of AUM)
NASDAQ: TCOM: $145.03 million (16.0% of AUM)
NYSE: SE: $131.60 million (14.5% of AUM)
NYSE: TAL: $123.17 million (13.6% of AUM)
As of November 13, 2025, shares of Kanzhun Limited were priced at $20.88, up 51.4% over the past year, outperforming the S&P 500 by 39.93 percentage points
Kanzhun Limited reported trailing twelve months revenue of $1.09 billion and net income of $304.08 million through June 30, 2025
The position was previously 21.3% of the fund's AUM as of the prior quarter
Company overview
Market Capitalization
9.73 billion
Revenue (TTM)
$8.01 billion
Net Income (TTM)
$2.94 billion
Price (as of market close 2025-11-13)
$20.88
Company snapshot
Kanzhun Limited operates an online recruitment platform in China that connects job seekers with employers. The company operates BOSS Zhipin, an online recruitment platform connecting job seekers with employers in China; primary revenue is generated from recruitment-related services.
Kanzhun Limited monetizes through fees paid by enterprises and corporations for recruitment listings, premium access, and value-added services on its digital platform.
The company serves a broad base of corporate clients, ranging from small and medium-sized enterprises to large organizations seeking talent acquisition solutions in the Chinese labor market.
Foolish take
CoreView Capital increased its stake in Kanzhun even after the stock had already risen sharply. Following the addition, Kanzhun accounts for roughly a quarter of the fund’s reported U.S. equity holdings, placing it among CoreView’s largest positions. The increase came despite strong recent performance, indicating the firm continues to view Kanzhun as a core holding rather than a position to harvest after a rally.
Kanzhun runs BOSS Zhipin, which is closer to a live hiring marketplace than a job board. Employers pay to reach candidates and manage the recruiting flow within the platform, and the product works best when response times are fast and match quality remains high. That creates a simple operating tension investors should keep in mind: the platform’s value rises with activity and engagement, but the company still has to keep recruiter ROI strong enough that employers keep paying even when hiring slows. The reason Kanzhun stands out is that it has already shown it can scale this model into real profits, with trailing revenue of about $1.09 billion and net income of about $304 million through June 30, 2025.
For investors, Kanzhun’s next chapter is about whether profitability holds up when the hiring tape gets choppy. Enterprise spending behavior and margin stability will matter more than headline job growth. If Kanzhun keeps posting clean earnings without needing a hiring boom to do it, the stock will justify being treated as a durable platform business rather than a short-cycle China rebound trade.
Glossary
AUM: Assets Under Management; the total market value of investments a fund or manager oversees.
13F: A quarterly SEC filing required from institutional investment managers to disclose U.S. equity holdings.
Reportable AUM: The portion of a fund's assets that must be disclosed in regulatory filings, such as the 13F.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Stake: The ownership interest or shareholding a fund or investor has in a company.
Filing: An official document submitted to a regulatory authority, such as the SEC, reporting financial or ownership information.
Outperforming: Achieving a higher return or growth rate than a specified benchmark or index.
Premium access: Paid, enhanced features or services offered on a digital platform beyond the standard offering.
Value-added services: Additional services provided for a fee that enhance the core offering of a company.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool recommends JD.com. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kanzhun’s Earnings Momentum Highlights a Shift Inside China’s Job Market

Key Points
XY sold 419,251 shares, closing out a position previously valued at $13.68 million.
It represents a 7.21% decrease relative to 13F reportable assets under management (AUM).
XY Capital Ltd disclosed a complete exit from JD.com (NASDAQ:JD) in its November 13, 2025, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated November 13, 2025, XY Capital Ltd sold all 419,251 shares of JD.com, closing its position. The estimated transaction value is $13.68 million, based on quarterly average pricing. The fund reported 157 total positions and $189.92 million in 13F reportable U.S. equity assets after this filing.
What else to know
Top holdings after the filing (not including stock options):
NYSE: BABA: $15.23 million (12.7% of AUM)
NYSE: BEKE: $9.50 million (7.9% of AUM)
NYSE: YUMC: $6.55 million (5.5% of AUM)
NYSEMKT: FXI: $5.96 million (5.0% of AUM)
NYSE: AEG: $5.48 million (4.6% of AUM)
As of November 13, 2025, shares were priced at $30.71, down 11.47% over the past year and underperforming the S&P 500 by 25.07 percentage points
Company Overview
Price (as of market close 2025-11-13)
$30.71
Market Capitalization
$43.55 billion
Revenue (TTM)
$181.9 billion
Net Income (TTM)
$4.49 billion
Company Snapshot
Offers a broad portfolio of products including electronics, home appliances, general merchandise, fresh produce, apparel, and healthcare items, complemented by logistics, marketing, and technology-driven supply chain services.
Operates a supply chain-based e-commerce platform, generating revenue through direct online sales, third-party marketplace services, logistics solutions, and value-added technology offerings.
Targets consumers and businesses across China, serving both individual shoppers and enterprise clients seeking integrated retail and logistics solutions.
JD.com, Inc. is a leading Chinese e-commerce and supply chain technology provider with extensive scale and a diversified product offering. The company leverages its proprietary logistics infrastructure and digital capabilities to deliver efficient, reliable service to a broad customer base. Its integrated model and focus on technology-driven supply chain solutions position it competitively in the rapidly evolving retail and logistics landscape.
Foolish take
XY Capital has closed out its JD.com position amid a long-term downtrend in the stock. Although the stock stopped falling in 2024, the increases since that time have been minimal.
Admittedly, other Chinese stocks, such as JD.com’s largest competitor, Alibaba, experienced a comparable decline until 2024. Also, investors often turn to a No. 2 company in a given industry, and JD.com certainly fits that description in the Chinese market.
However, Alibaba has dramatically outperformed JD.com since that time. Moreover, JD.com has stuck primarily to retailing and logistics operations, though it has become a retail-as-a-service provider for its partners.
In contrast, Alibaba has more closely followed Amazon’s tech conglomerate model. Since Alibaba also has a cloud segment, it may appear more attractive to investors like XY Capital, which, as previously mentioned, is the fund's largest holding.
Additionally, investors have numerous choices when it comes to tech-driven e-commerce conglomerates. With the additional risk of Chinese stocks, XY Capital may have decided it feels more comfortable investing in market leader Alibaba.
Glossary
13F reportable assets: U.S. equity securities that institutional investment managers must disclose quarterly to the SEC using Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Quarterly average pricing: The average price of a security over a given quarter, often used for estimating transaction values.
Position: The amount of a particular security or asset held by an investor or fund.
Complete exit: Selling all shares of a security, resulting in no remaining ownership in that position.
Filing: An official document submitted to a regulatory agency, such as the SEC, disclosing financial or operational information.
TTM: The 12-month period ending with the most recent quarterly report.
Third-party marketplace services: Services allowing external sellers to offer products on a company’s e-commerce platform, generating fees or commissions.
Value-added technology offerings: Additional technology-based services provided to customers beyond basic product sales, often for a fee.
Integrated model: A business structure combining multiple functions—such as sales, logistics, and technology—within one organization for efficiency.
Supply chain-based e-commerce platform: An online retail system that manages product flow from suppliers to customers, emphasizing logistics and delivery efficiency.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Alibaba Group and JD.com and recommends the following options: long January 2027 $47.50 calls on Yum China and short January 2027 $52.50 calls on Yum China. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XY Capital Dumps 419,000 JD.com Shares in $13.7 Million Exit

Alibaba BABA confronts persistent headwinds in its core e-commerce operations despite management's aggressive pivot toward artificial intelligence investments. The company reported 5% year-over-year revenue growth to RMB247.8 billion in its second quarter of fiscal 2026, but this modest expansion masks troubling deterioration in profitability metrics.
Non-GAAP earnings plunged 71% year over year to RMB4.36 per American Depositary Share, significantly underperforming analyst expectations by approximately 20%. Operating income plunged 85% from RMB35.2 billion to just RMB5.4 billion, reflecting the substantial margin compression from strategic investments.
The China commerce segment faces intensifying competitive pressure from PDD Holdings, ByteDance's Douyin and JD.com, forcing Alibaba into costly defensive strategies. While local e-commerce revenues expanded 16% during the fiscal second quarter, supported by government consumption stimulus measures, this growth required elevated marketing expenditure and aggressive subsidies through the company's "10-Billion Subsidy" program. Management emphasized optimization of quick commerce unit economics, achieving a 50% reduction in per-order losses since mid-2025, yet these improvements remain insufficient to offset broader margin degradation.
In December 2025, Alibaba announced expanded instant commerce infrastructure through its Cainiao logistics arm, planning new or expanded warehouses across 31 mainland Chinese cities by January 2026 to enable four-hour grocery deliveries. However, this infrastructure investment compounds capital expenditure concerns, with the company already reporting RMB21.8 billion negative free cash flow last quarter, driven by an 80% year-over-year increase in capital spending. The balance sheet deterioration raises questions about Alibaba's ability to sustain simultaneous investments in AI infrastructure, quick commerce logistics and margin-eroding subsidies while defending against relentless competitive encroachment in its traditional e-commerce stronghold.
Rivals Navigate Infrastructure Expansion
Amazon AMZN has aggressively accelerated its quick commerce footprint throughout late 2025, establishing over 300 micro-fulfillment centers across India's major metropolitan areas. Amazon's "Amazon Now" service promises 10-minute deliveries across select areas in Bengaluru, Delhi and Mumbai, with daily orders growing 25% month over month since the September 2025 expansion. The e-commerce giant announced in December 2025 plans to open two new dark stores daily, targeting 300 total facilities by year-end, exclusively in its three operating cities. Amazon's infrastructure investments remain substantial yet focused, concentrating resources on high-density urban markets where Prime membership penetration provides customer acquisition advantages.
Meanwhile, JD.com JD surpassed 700 million annual active customers in October 2025, driven partly by its JD NOW instant retail platform. It delivered products in as fast as nine minutes from over 500,000 physical stores across 2,300 Chinese counties and cities. JD.com achieved sequential investment reduction in its food delivery business during the third quarter, demonstrating improved unit economics performance that contrasts sharply with Alibaba's mounting losses. JD.com's November 2025 Singles' Day performance showcased 40% year-over-year growth in shoppers and nearly 60% order volume increases, with 95% of retail orders fulfilled within 24 hours.
Both Amazon and JD.com face similar infrastructure cost pressure as Alibaba, yet appear better positioned to absorb expansion expenses, given stronger baseline profitability and more disciplined capital allocation strategies.
BABA’s Share Price Performance, Valuation and Estimates
BABA shares have surged 30.3% in the past six-month period, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s growth of 4.2% and 3.1%, respectively.
BABA’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BABA stock is currently trading at a forward 12-month price/sales ratio of 2.23X compared with the industry’s 2.14X. BABA has a Value Score of D.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $6.42 per share, implying a 28.7% year-over-year decline.
Alibaba Group Holding Limited Price and Consensus
Alibaba currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Alibaba Stock Recover Amid Slowing E-Commerce Market Momentum?

Key Points
Sale represents a 4.3420% shift in 13F reportable assets under management.
Post-trade stake: 0 shares, $0 in value.
Yiheng Capital Management, L.P, fully exited its put option position in Planet Fitness (NYSE:PLNT) in the quarter ending September 30, 2025, according to a November 14, 2025, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated November 14, 2025, Yiheng Capital Management, L.P. reported having sold its entire put option position in Planet Fitness during the third quarter. This reduction amounted to 270,000 shares, with the estimated trade value based on the quarterly average price at $29,443,500.
What else to know
Top five holdings after the filing (not including options):
NYSE: NOAH: $77.85 million (12% of AUM)
NASDAQ: BILI: $39.85 million (5.9% of AUM)
NYSE: EDU: $27.70 million (4.1% of AUM)
NASDAQ: JD: $27.54 million (4.1% of AUM)
NASDAQ: HTHT: $17.87 million (2.6% of AUM)
As of November 13, 2025, shares of Planet Fitness were priced at $107.11, up 10.62% over the past year, outperforming the S&P 500 by 0.52 percentage points.
The position was previously 2.65% of the fund's AUM as of the prior quarter; the exit aligns with a broader downsizing, as total fund AUM dropped 39% quarter-over-quarter.
Company Overview
Revenue (TTM)
$1.29 billion
Net Income (TTM)
$205.80 million
Price (as of market close 2025-11-13)
$107.11
One-Year Price Change
10.62%
Company Snapshot
Offers fitness center memberships, franchising services, and equipment sales under the Planet Fitness brand.
Generates revenue through a mix of franchise fees, corporate-owned store operations, and equipment sales to franchisees.
Targets value-oriented fitness consumers in the United States and select international markets through both franchised and corporate-owned locations.
Planet Fitness, Inc. operates a large network of fitness centers, leveraging a franchise-driven model to expand its footprint across multiple countries. The company focuses on providing affordable, accessible fitness options, supported by a strong brand and scalable business structure. Its combination of recurring membership revenues and franchise growth underpins its competitive position in the leisure and fitness industry.
Foolish take
Yiheng invests in a variety of industries, which means the Planet Fitness holding was probably not unusual. It also commonly holds stock options along with stocks, with four of its 27 holdings consisting of options in the third quarter of 2025.
By holding put options in Planet Fitness, Yiheng Capital had bet the price of the stock would go down. During the third quarter, Planet Fitness’s stock price had fallen modestly.
Put options give an investor the right to sell a stock at a fixed price until the option’s expiration date. However, such instruments can fall in value if the stock trades in a range or does not move significantly.
This appears to have happened with the Planet Fitness options. While the stock price fell during the third quarter, the change in price was modest, indicating it may not have fallen far enough for the put options to become profitable.
Amid such conditions, Yiheng Capital probably made a wise choice by exiting that position.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing certain holdings.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Quarter-over-quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Franchise fees: Payments made by franchisees to a franchisor for the right to operate under the franchisor's brand and system.
Franchise-driven model: A business strategy where growth and operations are primarily achieved through franchising rather than company-owned locations.
Exposure: The extent to which a fund or investor is invested in a particular asset, sector, or market.
Downsizing (in fund context): Reducing the size of a fund’s portfolio, often by selling assets or positions.
Post-trade: The state of a portfolio or position after a trade has been executed.
TTM: The 12-month period ending with the most recent quarterly report.
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When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 986%* — a market-crushing outperformance compared to 196% for the S&P 500.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Fitness. The Motley Fool recommends JD.com. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Yiheng Capital Dumps 270,000 Planet Fitness Shares Worth $29.4 Million

The following are the top rated Consumer Discretionary stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
JD.COM INC (ADR) (JD) is a large-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Peter Lynch is 98% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: JD.Com Inc is a company principally engaged in the e-commerce business, including online retail and online marketplace mainly through its retail mobile apps and www.jd.com website (collectively, JD Platform). The Company operates its businesses through four segments. JD Retail segment, including JD Health, JD Industrials, and other components, mainly engage in online retail, online marketplace and marketing services in China. JD Logistics segment includes both internal and external logistics businesses. Dada segment is a local on-demand delivery and retail platform in China. New Businesses segment mainly include JD Property, Jingxi and overseas businesses. The Company mainly conducts its businesses in the domestic market and overseas markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of JD.COM INC (ADR)
DILLARD'S INC (DDS) is a large-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dillard's, Inc. is a retailer of fashion apparel, cosmetics and home furnishings. The Companys segments include the operation of retail department stores and a general contracting construction company. It operates 272 Dillards stores, including 28 clearance centers, and an Internet store at dillards.com offering a wide selection of merchandise including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), a portion of whose business includes constructing and remodeling stores for the Company. Its merchandise selections include its lines of exclusive branded merchandise, such as Antonio Melani, Gianni Bini, GB, Roundtree & Yorke and Daniel Cremieux. Its retail stores are located primarily in shopping malls and open-air centers throughout the southwest, southeast and Midwest regions of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DILLARD'S INC
ROSS STORES INC (ROST) is a large-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ross Stores, Inc. is engaged in operating two brands of off-price retail apparel and home fashion stores-Ross Dress for Less (Ross) and dds DISCOUNTS. Ross is the off-price apparel and home fashion chain in the United States, with approximately 1,831 locations in 43 states, the District of Columbia, and Guam. Ross offers in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross target customers are primarily from middle-income households. It also operates approximately 355 dds DISCOUNTS stores in 22 states. dds DISCOUNTS features more moderately-priced in- season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. It operates a total of approximately 2,186 stores.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ROSS STORES INC
ATOUR LIFESTYLE HOLDINGS LTD - ADR (ATAT) is a mid-cap growth stock in the Hotels & Motels industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Atour Lifestyle Holdings Ltd is a holding company principally engaged in hotel chain operations. The Company also leases the properties of the hotels. In addition, The Company digitally incorporates the marketing and sales of retail products and services into guests experience at hotel properties. The Company focuses on sleep-related products, aiming to enhance guests sleep quality. The Company mainly operates the brands Atour, Yaduo, Atour Light, Atour S, Atour Planet, and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ATOUR LIFESTYLE HOLDINGS LTD - ADR
TOYOTA MOTOR CORP (ADR) (TM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TOYOTA MOTOR CORP (ADR)
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Peter Lynch - 12/18/2025

JD.com JD shares have plunged 11.2% over the past six months, lagging significantly behind the Zacks Retail-Wholesale sector’s return of 6.6% and the Zacks Internet-Commerce industry’s advance of 5.3%. The stock's weakness reflects investor concerns around profitability pressure from new business investments, moderating growth in electronics categories after government subsidies ended and the ongoing drag from food delivery losses.
This notable gap in performance raises a critical question for investors: Does JD's current price offer a compelling entry point, or are there deeper problems that warrant caution? Let's delve deeper to find out.
JD Underperforms Sector & Industry in the Past 6 Months
Image Source: Zacks Investment Research
Food Delivery Expansion Pressures Near-Term Profitability
JD’s aggressive push into food delivery has emerged as a meaningful drag on near-term profitability. During the third quarter of 2025, the segment reported an operating loss of RMB 15.7 billion as JD scaled its on-demand delivery operations. The initiative represents a structural shift from JD’s centralized, inventory-led retail model to a hyperlocal logistics network, bringing significantly higher operating complexity.
Competition remains intense, particularly against entrenched leader Meituan, forcing JD to rely on heavy subsidies and commission-free policies to attract merchants and users. While these tactics have supported rapid GMV and order growth, they have limited revenue contribution and pressured unit economics. Achieving scale efficiency in real-time logistics requires dense routing and sustained investment, delaying meaningful margin recovery.
Encouragingly, losses narrowed sequentially in the third quarter as operating efficiency improved and order mix shifted toward higher-value transactions. Concepts such as 7Fresh Kitchen have gained early traction, but the path to breakeven remains uncertain given the capital-intensive and highly competitive nature of the market.
Competition Across Multiple Fronts Strains Resources
JD continues to face competitive pressure across pricing, logistics and user acquisition. PDD Holdings PDD maintains aggressive discounting and social commerce promotions, forcing JD to sustain elevated marketing spend. Marketing expenses surged 110.5% year over year in the third quarter, largely driven by promotions tied to new business initiatives. Alibaba BABA is deepening its asset-light marketplace strategy, sustaining pricing pressure in categories such as apparel and general merchandise where margins remain thin.
Globally, Amazon AMZN sets expectations for delivery speed and membership benefits, raising the bar for logistics-led platforms. Simultaneously, JD’s diversification into food delivery, international expansion, and lower-tier market penetration through Jingxi is absorbing significant capital. Free cash flow declined to RMB 12.6 billion on a trailing twelve-month basis as of September 30, down from RMB 33.6 billion a year earlier, reflecting investment-heavy growth and working capital needs.
The Zacks Consensus Estimate for JD's fourth-quarter 2025 EPS is pegged at 56 cents, unchanged over the past 30 days, down 45.10% year over year, signaling continued profitability pressure. Although JD holds RMB210.5 billion in cash, sustained investment limits flexibility. PDD Holdings’ lean model and Alibaba’s restructuring highlight execution challenges, while Amazon’s high-margin businesses underscore JD’s need for tighter cost discipline to rebuild confidence.
JD.com, Inc. Price and Consensus
User Momentum Provides Growth Foundation
JD continues to demonstrate strong user momentum. Annual active customers surpassed 700 million in October 2025, while quarterly active users and shopping frequency both rose more than 40% year over year in the third quarter, providing a solid base for future revenue growth.
Food delivery has contributed to user acquisition, with early cohorts showing cross-category purchasing behavior. The JD Plus membership base continues to expand, supporting higher engagement and lifetime value. Within core retail, JD generated revenues of RMB 250.6 billion in the third quarter, with operating margin improving to 5.9% from 5.2% a year earlier.
General merchandise revenues accelerated 18.8% year over year, while marketplace and marketing revenues increased 23.7%, driven by rising merchant participation. These higher-margin services help offset pressure from capital-intensive segments. The Zacks Consensus Estimate for JD’s fourth-quarter 2025 revenues is pegged at $51.61 billion, up 8.57% year over year, highlighting platform resilience, though incremental gains are likely absorbed by ongoing investments.
Valuation Considerations
JD shares appear undervalued, supported by a Value Score of B. The stock trades at a forward 12-month price-to-earnings ratio of 9.33x, well below the industry average of 23.69x and the sector average of 24.52x. In comparison, PDD Holdings trades at 9.88x, Alibaba at 18.97x and Amazon at 28.49x, suggesting JD’s valuation discount.
The valuation discount reflects a transition phase rather than structural weakness. Ongoing investments in food delivery, logistics and international expansion are broadening JD’s growth runway and enhancing its ecosystem depth, even as near-term profitability remains under pressure. As these initiatives mature and operating efficiency improves, the current valuation gap could narrow, offering potential upside over time while warranting patience at current levels.
JD’s Shares Trade at a Discount
Image Source: Zacks Investment Research
Conclusion
JD’s recent underperformance reflects a period of heavy reinvestment and elevated competitive pressure rather than a deterioration in its core franchise. The company continues to show resilience in user engagement and revenue mix, while valuation offers downside support. However, margin recovery remains gradual as food delivery and expansion initiatives weigh on near-term profitability. With earnings visibility still evolving, upside catalysts appear more medium term in nature.
JD currently carries a Zacks Rank #3 (Hold), suggesting prudent investors may consider holding positions while waiting for attractive entry points in the future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JD's 11% Drop Trails Sector in 6 Months: Buy, Sell or Hold the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Schwab Fundamental Emerging Markets Large Company Index ETF (Symbol: FNDE) where we have detected an approximate $267.7 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 219,100,000 to 226,700,000). Among the largest underlying components of FNDE, in trading today JD.com, Inc. (Symbol: JD) is up about 0.4%, Yum China Holdings Inc (Symbol: YUMC) is up about 0.6%, and Ecopetrol SA (Symbol: EC) is up by about 0.3%. For a complete list of holdings, visit the FNDE Holdings page » The chart below shows the one year price performance of FNDE, versus its 200 day moving average:
Looking at the chart above, FNDE's low point in its 52 week range is $26.43 per share, with $37.835 as the 52 week high point — that compares with a last trade of $35.26. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Materials Stocks Hedge Funds Are Buying
BKNG DMA
XBTF shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Inflows: FNDE, JD, YUMC, EC

Key Points
Cloud and AI became Alibaba’s most credible growth engine.
E-commerce stabilization removed a major overhang.
Alibaba clarified its identity as a technology platform.
2025 marked an inflection year for Alibaba Group (NYSE: BABA). After several years defined by regulatory pressure, slowing growth, and investor skepticism, the company didn't suddenly return to its former dominance. But it did change direction in ways that matter for long-term investors.
Instead of chasing short-term optics, Alibaba clarified its priorities. It leaned into cloud and artificial intelligence, stabilized its core e-commerce business, and began repositioning itself from a pure commerce giant into a broader technology and AI platform.
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Three shifts stand out.
Cloud and AI emerged as Alibaba's primary growth engine
The most important development in 2025 was the acceleration of Alibaba Cloud, driven overwhelmingly by AI demand.
In the September 2025 quarter, Alibaba reported cloud revenue growth of 34% year over year, making it the company's fastest-growing major segment. Management also disclosed that AI-related cloud revenue continued to grow at triple-digit rates.
These numbers matter because they confirm something investors doubted for years: Alibaba's cloud business is no longer a scale story without monetization. AI workloads -- including model training, inference, and enterprise AI services -- require significantly more computing power than traditional cloud tasks. That dynamic drives higher spending per customer and improves the long-term quality of revenue.
Alibaba now operates as one of the core infrastructure providers supporting China's AI adoption. Enterprises across logistics, internet services, and industrial sectors increasingly rely on Alibaba Cloud to deploy and scale AI applications. With its integrated infrastructure comprising Qwen (Tongyi Qianwen) language models, cloud services, and AI development tools, Alibaba has built a cloud platform that increasingly resembles the roles Amazon's AWS and Microsoft's Azure play in Western markets, but is tailored to China's regulatory and enterprise environment.
For investors, 2025 changed how Alibaba Cloud fits into its long-term story. It moved from a supporting asset to the company's most credible long-term growth engine.
E-commerce stabilized, and that was enough
Alibaba's core China commerce business didn't reaccelerate in 2025 to its past trajectories, but it didn't need to. After years of concern that Taobao and Tmall were in structural decline, the business showed clear signs of stabilization.
In the half year ended Sept. 30, 2025, e-commerce customer management revenue returned to 10% growth, supported by improving user engagement and better retention. This performance is particularly satisfying considering that the giant continues to face intense competition from peers like Pinduoduo, JD.com, Douyin and Meituan.
This stabilization mattered more than headline growth rates. Investors stopped treating Alibaba's e-commerce business as a melting ice cube. Instead, they began viewing it as a mature, resilient foundation that could support investment in newer growth areas.
The bar for commerce in 2025 was simple: hold share, protect engagement, and avoid further erosion. Alibaba largely met that bar. While competitive pressure continues to weigh on margins, the commerce segment no longer dominates the risk narrative, giving management room to execute elsewhere.
Alibaba began redefining itself as a technology and AI platform
Perhaps the most underappreciated shift in 2025 was strategic rather than financial. Alibaba increasingly framed itself not just as an e-commerce leader, but as a cloud, AI, and enterprise technology platform.
This repositioning showed up across the organization. Alibaba highlighted AI-driven improvements across Taobao and Tmall and the use of AI across other businesses in logistics, enterprise software, etc. At the same time, the company emphasized its role as an infrastructure provider (primarily via its cloud and AI division) for enterprises building AI-powered workflows.
Don't get me wrong. Commerce still matters, but it no longer defines the entire strategic direction. Cloud and AI now sit at the center of Alibaba's long-term vision, with commerce acting as both a distribution channel and a data engine for its technology platform.
This identity shift matters because it expands Alibaba's opportunity set. A commerce-only Alibaba faces natural growth limits. A technology platform anchored in cloud and AI carries far more optionality over the next decade.
2025 didn't complete that transformation, but it made the direction unmistakably clear.
What does it mean for investors?
Alibaba still faces real challenges. Competition remains intense, margins face pressure, and investor sentiment toward Chinese tech can swing quickly. But 2025 delivered something investors hadn't seen in a while: coherence.
Cloud and AI now drive growth. E-commerce provides stability rather than anxiety. And management has articulated a clearer identity centered on technology and enterprise enablement.
For long-term investors, that combination matters more than short-term earnings volatility. Alibaba no longer looks like a company stuck between past success and future uncertainty. Instead, it looks like a company laying the groundwork for its next chapter.
2025 wasn't a comeback year. It was a reset year, and resets like this often mark the real beginning of a more durable recovery.
Should you buy stock in Alibaba Group right now?
Before you buy stock in Alibaba Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alibaba Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Lawrence Nga has positions in Alibaba Group and PDD Holdings. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends Alibaba Group and JD.com and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alibaba in 2025: Three Shifts That Investors Should Know Before Entering 2026

Key Points
PDD once grew rapidly, but its high-growth days may be over.
MercadoLibre is growing faster, is better diversified, and has a wider moat.
MercadoLibre’s stock is pricier, but it deserves its premium valuation.
PDD (NASDAQ: PDD), China's third-largest e-commerce company after Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD), went public on July 26, 2018 at $19 per ADS. On Feb. 17, 2021, its stock closed at its all-time high of $202.82.
That rally was fueled by the explosive growth of its discount marketplace, its market share gains against Alibaba and JD, and the expansion of its online agricultural business. It expanded by selling cheaper products in China's lower-tier cities, encouraging its shoppers to team up to score bigger bulk discounts, and bypassing supermarkets by directly connecting farmers to consumers. It also launched a cross-border marketplace, Temu, to connect its Chinese merchants to overseas buyers.
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From 2018 to 2024, PDD's revenue grew at a CAGR of 76%. It also turned profitable in 2021, and its net income increased at a CAGR of 144% over the following three years. Those stunning growth rates made it one of the fastest-growing e-commerce companies globally.
But from 2024 to 2027, analysts expect its revenue and net income to grow at a more modest CAGR of 12% and 7%, respectively, as its business matures. It's facing stiffer competition from Alibaba and China, while the unpredictable tariffs are throttling Temu's overseas expansion.
PDD's stock has pulled back to about $110 and appears to be a bargain at ten times next year's earnings, but its high-growth days might be over. The persistent trade tensions between the U.S. and China could also continue to compress its valuations. Instead of betting on PDD's turnaround next year, investors should take a closer look at another high-growth e-commerce company, MercadoLibre (NASDAQ: MELI), which may have more upside potential.
How fast is MercadoLibre growing?
MercadoLibre, founded in Argentina in 1999 and currently headquartered in Uruguay, is the largest e-commerce company in Latin America. It established a first-mover's advantage by localizing its marketplace for different countries, expanding its logistics network across challenging terrain, and securing its customers with its Mercado Pago digital payments platform.
MercadoLibre now operates its marketplace across 19 Latin America countries, but it generates most of its revenue in Brazil, Argentina, and Mexico. Its Mercado Pago platform has also expanded and evolved into a full-fledged fintech ecosystem with its own digital wallet, credit platform (Mercado Crédito), crypto trading tools, and banking services.
From 2018 to 2024, MercadoLibre's revenue grew at a CAGR of 56%. It also turned consistently profitable in 2021, and its net income grew at a CAGR of 184% over the following three years. At the end of 2024, it served over 100 million annual unique active buyers and 60 million fintech monthly active users. However, that only represents a fraction of the 668 million people (including 451 million adults) who live across the Latin American and Caribbean region.
MercadoLibre is saturating its three largest markets, but it's still expanding in smaller and higher-growth markets, such as Chile, Colombia, Peru, and Ecuador. According to Grand View Research, Latin America's e-commerce market is expected to continue expanding at a robust CAGR of 17.4% from 2024 to 2030, as the region's income levels and internet penetration rates rise.
Why could MercadoLibre have more upside potential than PDD?
From 2024 to 2027, analysts expect MercadoLibre's revenue and net income to grow at a CAGR of 29% and 62%, respectively. That growth should be driven by its sales of more profitable products on its first-party marketplace and the expansion of its third-party, higher-margin credit and advertising businesses. Its improving scale should continue to dilute its logistics, payment processing, and marketing costs per order.
MercadoLibre should also profit from its competitors' setbacks. Americanas, its biggest rival in Brazil, struggled with a disastrous accounting scandal over the past two years. Singapore's Sea Limited (NYSE: SE), which launched its Shopee marketplace in Latin America in 2019, shut down most of those regional marketplaces over the following six years. Amazon (NASDAQ: AMZN) also struggled to expand its presence in Latin America over the past decade.
MercadoLibre's business is gradually maturing, but it still has more upside potential than PDD. It might seem a lot pricier at 34 times next year's earnings, but its stronger growth, broader diversification, and wider moat all justify that higher valuation.
Should you buy stock in PDD Holdings right now?
Before you buy stock in PDD Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PDD Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $505,695!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,080,694!*
Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of December 16, 2025.
Leo Sun has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool recommends Alibaba Group and JD.com. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JD.com, Inc.

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