JD’s possibly declining margin worries the market
Posted On November 11, 2020
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JD reported a better-than-expected Q3 revenue report with RMB 174.2 billion ($25.7 billion, a 29.2% year-on-year increase), whereas the shares fell 7.4% in US trading on Monday. Experts forecast the margin will shrink in the next quarter since the e-commerce giant has invested heavily in supermarkets and delivery infrastructure. JD’s quarterly cost of revenue also rose to RMB 147.4 billion, up 28.5% from the same period of last year.