JD.com: Still a Buy, Apparently

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So, JD.com. It had a quarter. Let’s just say it wasn’t a TikTok dance challenge of good news. Shares took a tumble – nearly 20%, which in stock terms is like falling into a very expensive, slightly judgmental swimming pool. But, and this is where it gets interesting, North of South Capital LLP decided to buy more. 180,081 shares more, to be precise. That’s about $5.63 million worth of “we still believe in this” money. It’s like doubling down on a terrible hand in poker, except with more spreadsheets.

What Happened (and Why You Should Care…Maybe)

According to a filing that probably cost a small fortune in legal fees, North of South increased its stake in JD.com during the fourth quarter of 2025. The purchase is valued around $5.63 million. Now, the value of their existing position fell by $20.41 million. Which, let’s be honest, is a really effective way to illustrate the concept of diminishing returns. They bought high(er), the market said “nope,” and now they’re hoping for a rebound. It’s the circle of retail life.

What Else to Know (aka, The Portfolio Rundown)

As of late, North of South Capital is holding:

  • NYSE: IBN: $220.18 million (19.8% of AUM)
  • NYSE: TSM: $137.90 million (12.4% of AUM)
  • NASDAQ: JD: $122.06 million (11.0% of AUM)
  • NYSE: YMM: $116.40 million (10.5% of AUM)
  • NYSE: PAAS: $111.27 million (10.0% of AUM)

Shares of JD.com were trading at $28.27 as of February 11th. That’s down 28.7% over the past year. Compared to the S&P 500, they’re underperforming by a margin that’s frankly embarrassing. It’s like bringing a spork to a knife fight.

Company Overview (The Cliff’s Notes Version)

Metric Value
Price (as of market close 2026-02-11) $28.27
Market Capitalization $39.29 billion
Revenue (TTM) $188.94 billion
Net Income (TTM) $4.67 billion

Company Snapshot (Because We Need Bullet Points)

  • JD.com sells everything. Seriously. Electronics, home appliances, healthcare…it’s the Amazon of China, only with more complicated logistics.
  • They’re obsessed with supply chains. And by obsessed, I mean they’ve built an entire business model around them. It’s like a very efficient, robotic ant colony.
  • They serve consumers and businesses across China. Which, let’s face it, is a lot of consumers.

JD.com is a tech-driven retailer that’s really good at getting stuff from point A to point B. They’ve invested heavily in logistics, and it shows. The question is, can they keep up the pace in a market that’s constantly changing? It’s a bit like trying to assemble IKEA furniture while riding a unicycle.

What This Transaction Means for Investors (aka, What Does It All Mean?)

Conviction is a funny thing. It’s especially noticeable when a fund keeps buying a stock that’s been getting pummeled. North of South’s position in JD.com now stands at $122.06 million, roughly 11% of their assets. That makes it a core holding, alongside ICICI Bank and TSMC. It’s like a portfolio built on a foundation of cautious optimism…and a healthy dose of caffeine.

Operationally, things are…nuanced. Third-quarter net revenues rose 14.9% year-over-year. Service revenue is up 30.8%. But operating margin flipped negative, thanks to increased marketing expenses and fulfillment costs. They’re investing in new initiatives, which is good, but it’s also a gamble. It’s the corporate equivalent of a midlife crisis.

For long-term investors, the key question is whether those investments will pay off. Annual active customers surpassed 700 million. They generated RMB12.6 billion in trailing 12-month free cash flow. If JD.com can stabilize margins and maintain double-digit revenue growth, today’s depressed valuation could look pretty attractive. Or it could be a very expensive lesson in hope. Only time will tell.

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2026-02-13 00:15