China e-commerce company JD.com (JD) reported better-than-expected first-quarter results Friday and extended its strategic alliance with internet giant Tencent (TCEHY). JD.com stock initially soared then settled back.
Reporting before the market open, JD.com earnings came in at an adjusted 2.23 yuan per share, or 33 cents, on revenue of 121.1 billion Chinese yuan, or $18 billion. Wall Street expected JD.com earnings of 12 cents a share on revenue of $17.68 billion. Revenue rose 21% in local currency from the year-ago period.
JD.com and China messaging and gaming giant Tencent extended their strategic alliance for three years as they both battle e-commerce titan Alibaba (BABA). Tencent owns nearly 20% of JD.com stock. Tencent’s WeChat messaging service and other properties help drive JD.com’s e-commerce sales. Meanwhile, JD.com embraces WeChat Pay.
JD.com expects its partnership with Tencent to improve customer satisfaction, reach a larger user base and further expand its presence on mobile commerce.
JD.com Stock Jumps
Alibaba stock fell 0.6% to 178. Tencent stock, which is Hong Kong-listed and trades over the counter in the U.S., closed at 48.46, up 1.5%. Alibaba and JD.com are the two largest e-commerce companies in China. JD.com has more than 220,000 merchants on its online marketplace.
Annual active customers on the JD.com platform reached 310.5 million, up about five million from the previous quarter and up 15% from the year-ago quarter.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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