Michael Burry, of The Big Short fame, who predicted the 2008 subprime mortgage crisis, is known for his influence in the investment space.
Burry has a knack for identifying overlooked investment opportunities. His recent moves have focused on Chinese technology giants. Notably, one of his positions of interest is the e-commerce entity JD.com (NASDAQ: JD).
According to filings for Q3 2024, the Scion Asset Management head doubled his JD.com stake to 500,000 shares worth $20 million. Amid his stake, the e-commerce stock has traded mainly in the green over recent months.
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At the close of the last trading session, JD.com was valued at $40.72, reflecting a return of over 70% in the past year. Moreover, the stock had a strong start in 2025, gaining 18%.
JD stock fundamentals
With nearly 20% growth in 2025, the future looks bright for JD.com, whose underlying fundamentals aim to sustain growth in the competitive Chinese e-commerce market amid an optimistic outlook for the country’s technology sector.
Key drivers include the company’s focus on global partnerships and digital innovation. For instance, its recent partnership with Chilean brands aims to increase sales over three years, emphasizing premium products like cherries, wine, and salmon.
Additionally, JD’s direct sourcing strategy amid these partnerships has reduced import costs and a push towards enhancing quality, likely attracting more investor interest.
At the same time, with a diverse portfolio that includes electronics, appliances, and general merchandise, JD is well-positioned for expansion. Its established logistics network and push for authenticity enable it to grow into new categories and deepen its market share.
JD.com’s strong market position was evident during the 2024 Singles Day promotion, where it achieved over 20% year-over-year shopper growth. Its AI-powered supply chain and logistics network ensures seamless manufacturing and delivery operations.
Furthermore, the firm’s omnichannel strategy, including JD MALL and 7FRESH, integrates online and offline retail and sets it apart from competitors.
Analysts are also bullish on JD. For instance, Jefferies recently raised its price target from $54 to $60 while maintaining a “Buy” rating. Analyst Thomas Chong cited strong Q4 management, boosted by Double-11 discounts and trade-ins, as key growth drivers. Better-than-expected revenue and margins from JD Retail further supported the upgrade.
BOCOM International also raised its Q4 2024 revenue and profit forecasts by 3% and 12%, respectively, while maintaining a “Buy” rating. China Merchants Securities projects a 9% year-on-year revenue increase.
Is JD stock a bargain?
The stock’s current valuation must be considered to determine if JD.com is a bargain. As of January 24, JD.com’s Price-to-Earnings (P/E) ratio stood at 12.94, which is relatively low compared to many of its tech peers in China and the U.S.
A lower P/E ratio generally suggests that a stock may be undervalued relative to its earnings potential, making it an attractive investment opportunity—especially for long-term investors.
Even after its 70% price increase over the past year, JD.com may still be trading below its true potential based on earnings. This relatively low P/E ratio indicates the stock may still offer value, particularly given JD.com’s position in the growing Chinese e-commerce market.
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