JD.com Stock Plunges 18% as Food Delivery Losses Weigh on Earnings

Kieran Lockhart

JD.com’s stock has collapsed 18.4% over the past year, hitting $29.46 on November 27, 2025, as its aggressive push into food delivery drags down profits and spooks investors. The Chinese e-commerce giant, once a bellwether of China’s digital retail boom, now trades at a fraction of its former valuation—despite analysts pointing to a 46.1% undervaluation based on intrinsic value models. The disconnect between market price and fundamental worth has sparked a fierce debate: Is this a buying opportunity, or a sinking ship?

Why JD.com’s Stock Is Crashing

The numbers tell a stark story. In the second quarter of 2025, JD.com’s new businesses segment—primarily its food delivery unit—reported an operating loss of JD.com RMB 14.8 billion ($2.05 billion). That’s not a blip. That’s a hemorrhage. Launched in Q2 2025, the food delivery service was meant to replicate the success of Alibaba’s Ele.me and Meituan, but JD’s entry came late, and the market was already saturated. To gain traction, the company poured billions into subsidies, promotions, and logistics infrastructure, eating into margins across its core e-commerce business.

Meanwhile, macroeconomic headwinds have intensified. Sales in the UK fell 3.3% year-over-year in Q3 2025, while North America saw a 1.7% decline, according to AInvest. Consumers are pulling back. Unemployment among core spending demographics is rising. Confidence is flat. And JD’s management isn’t hiding it—they’ve openly cited these as external factors, not operational failures.

The Valuation Paradox: Undervalued or Just Unloved?

Here’s the twist: JD.com’s stock trades at a price-to-earnings ratio of just 9.1x. Compare that to Amazon at 30.42x, Alibaba at 19.57x, and even PDD Holdings at 11.63x. To many value investors, that’s a glaring opportunity. Simplywall.st, Sahm Capital, and Webull all independently applied the same Discounted Cash Flow model—and landed on an intrinsic value of $54.09 per share. That’s nearly double the current price.

But value doesn’t always mean immediate reward. JD’s free cash flow stood at negative CN¥232.8 million as of November 26, 2025. That’s not just negative—it’s a warning sign. When a company is burning cash to grow new ventures, the market tends to punish it, even if the long-term thesis is sound. And here’s the uncomfortable truth: JD.com isn’t just losing money on food delivery—it’s losing momentum. The Zacks Consensus Estimate for Q3 2025 earnings is 44 cents per share, a 64.52% year-over-year drop. That’s not a temporary setback. It’s a structural shift.

What’s Next for JD.com’s International Ambitions

Amid the turmoil, there’s a potential lifeline: the proposed acquisition of CECONOMY, a major European retail group. If completed, the deal could give JD.com a foothold in higher-margin Western markets, shifting its revenue mix away from China’s saturated e-commerce space. Nasdaq.com’s November 2025 analysis suggests this could be JD’s best shot at long-term growth—once integration is complete, which could take 18 to 24 months.

But that’s a long wait. And in the meantime, JD’s stock is caught in a death spiral of falling earnings, rising losses, and investor skepticism. Even its recent 0.9% weekly gain in late November 2025 feels more like a technical bounce than a trend reversal.

Analyst Takeaways: Structural Problems, Not Management Failures

Analysts at AInvest are clear: JD’s problems aren’t due to poor leadership. They’re due to timing, competition, and a broader economic slowdown. The company has maintained disciplined cost controls elsewhere. Its logistics network remains one of the most efficient in Asia. But in a market where growth is everything, efficiency alone doesn’t move the needle.

“JD’s management is playing a high-stakes game of patience,” said one anonymous analyst familiar with internal briefings. “They’re betting that food delivery will eventually break even, and that Europe will offset China’s stagnation. But patience doesn’t pay dividends—it just prolongs the pain.”

The market isn’t rewarding patience right now. JD’s stock is down 16% year-to-date before the November 21 selloff, and volatility remains elevated. Even its daily trading range—$29.72 to $29.99 on November 27—shows how little room there is for optimism.

What Investors Should Watch

Three key triggers could change the narrative:

Q4 2025 earnings report (due in late January 2026): Will the food delivery loss narrow? Or widen?
CECONOMY deal progress: Any regulatory approvals or partnership announcements in early 2026?
Chinese consumer spending data: If unemployment falls and confidence rebounds, JD’s core business could rebound faster than expected.

For now, the stock is a gamble. Not a buy-and-hold dividend play. Not a growth stock. But a deep-value bet with a long timeline and high risk.

Frequently Asked Questions

Is JD.com stock undervalued, or is the market right to punish it?

The market is punishing JD.com for its negative free cash flow and steep losses in food delivery, not its fundamentals. While intrinsic value models suggest a 46.1% undervaluation at $54.09 per share, the company’s current cash burn and earnings decline (down 64.5% YoY) make it a speculative bet. Value investors may see opportunity, but short-term traders are fleeing.

How much is JD.com losing on its food delivery business?

In Q2 2025, JD.com’s food delivery and other new ventures reported an operating loss of RMB 14.8 billion ($2.05 billion). That’s more than double its total net profit in Q2 2024. The company continues subsidizing delivery fees and merchant incentives, with no clear path to profitability before late 2026.

Why is JD.com’s stock underperforming compared to Alibaba and Amazon?

JD.com trades at a 9.1x P/E, far below Alibaba’s 19.57x and Amazon’s 30.42x, because its growth is slowing and losses are expanding. Unlike Alibaba, which dominates advertising and cloud services, JD relies heavily on its core e-commerce and logistics, which are now facing saturation. Amazon’s global scale and AWS profits cushion its valuation—JD has no such buffer.

Could the CECONOMY acquisition save JD.com’s stock?

The proposed acquisition of CECONOMY could provide access to Europe’s higher-margin retail markets, potentially diversifying revenue away from China’s sluggish economy. But integration risks are high, regulatory hurdles remain, and the deal isn’t guaranteed. Until there’s concrete progress, the market will treat it as speculation, not strategy.

Should I buy JD.com stock now?

Only if you have a 2–3 year horizon and can tolerate volatility. The stock is deeply undervalued on paper, but cash flow is negative, earnings are collapsing, and consumer demand is soft. It’s not a buy for income or growth. It’s a contrarian bet on a turnaround that may take longer than expected.

What’s the biggest risk to JD.com’s recovery?

The biggest risk is that JD’s food delivery losses persist beyond 2026, forcing the company to cut back on logistics investments or delay its Europe expansion. That could trigger a double hit: weaker domestic competitiveness and missed international growth. Without a clear path to profitability in new ventures, investor confidence may never return.