$1.6 trillion asset manager Bank of America has announced a stake in Chinese e-commerce giant JD.com (NASDAQ: JD), citing the company’s growth potential.
JD is a key pick in the stock portfolio of Michael Burry of ‘The Big Short,’ as of the last quarter of 2024, the company accounted for 13.43% of his Scion Asset Management holdings, although he had drastically lowered his stake by 40% from the previous quarter.
While American stocks have experienced massive volatility, JD.com is among the Chinese equities that have stood out in 2025, gaining over 20% year-to-date with a valuation of $40.91 as of press time.
BofA acquires stake in JD.com
In an investor note on Monday, March 31, BofA analysts stated that the banking giant is acquiring a 1% stake in JD.com. They cited the company’s leading position in the e-commerce sector and its dual business model, which includes direct sales and a marketplace for third-party merchants.
At the same time, BofA highlighted JD.com’s significant investments in logistics infrastructure as a key factor in its decision. JD’s logistics arm serves JD.com and external clients, positioning it for continued growth.
The analysts also stated that JD stock is an ideal pick, as the technology firm is expected to grow above the industry average, supported by government stimulus policies.
In addition, BofA cited risk-reward constraints in their investment approach to the company, reflecting a calculated strategy. Therefore, the 1% stake signals cautious confidence in the company’s prospects.
“We like JD as JD.com is expected to grow faster than industry average and benefit from the government’s stimulus policies. Rest of the trades are driven by risk-reward constraints,” BofA said.
Wall Street turns bullish on JD stock
Notably, after JD.com reported impressive quarter results, most of Wall Street turned bullish on the equity. For the quarter, the e-commerce entity reported revenue of $47.5 billion, a 13.4% increase year over year.
On March 12, Susquehanna raised its price target to $45 from $35 while maintaining a ‘Neutral’ rating. The firm noted JD.com’s solid Q4 performance, driven by macroeconomic improvements that boosted consumer spending. Looking ahead to 2025, the firm expressed optimism regarding the e-commerce company’s outlook, expecting further macro recovery and enhanced internal efficiency.
On March 10, Citi analyst Alicia Yap lifted JD stock’s price target to $56 from $51, reaffirming a ‘Buy’ rating after the company surpassed analysts’ estimates in revenue. Yap expects continued revenue and non-GAAP net profit growth of 11% year-over-year, reinforcing confidence in JD.com’s trajectory.
Finally, on March 7, Mizuho Securities raised JD.com’s price target to $50 from $43 while keeping an ‘Outperform’ rating. The firm pointed to its “clean beat” on earnings, citing revenue acceleration and margin expansion.
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