What's going on?

JD.com�s meager revenue growth overshadowed last quarter�s juicy profit, spooking investors on Thursday.

What does this mean?

Alibaba might be JD.com�s arch-rival, but the firms are both Chinese e-commerce giants � meaning they�re typically birds of a feather where results are concerned. So after Alibaba�s feeble revenue growth last quarter, it didn�t come out of left field when JD reported that overall revenue was disappointing and direct sales from its online platforms grew just 1%. In the firm�s defense, the cards were stacked against it: vast tracts of China remained under lockdown during the December quarter, keeping a lid on shopping. JD still managed to overshoot profit estimates, though, thanks to a raft of cost cuts. But that wasn�t enough to placate hard-to-please investors. They dumped the stock despite a tantalizing $1 billion dividend announcement.

Why should I care?

The bigger picture: It’s going to take patience and time.
JD�s performance might improve as China’s economy does, but let�s get one thing straight: the country�s not going to take off with one little wave of the government�s lockdown-lifting wand. Chinese imports and exports actually fell in January and February, and cautious spending brought last month�s inflation down to the lowest level in a year. Now JD�s betting that the rebound will be gradual, and it�s counting on consumers� confidence (and incomes) dialing up over time.

Zooming out: China�s e-comm royal rumble.
Competition in the Chinese e-commerce market is fierce right now, with newcomers like Pinduoduo shaking the thrones of well-fed reigning champs. But JD�s been brushing off distractions to focus on the fight, saying goodbye to its Thai and Indonesian websites in favor of closer-to-home programs like a $1.4 billion discount campaign. That�s not a guaranteed recipe for success either, though: margins could get dangerously thin if the firm�s not careful, and JD�s rep as a marketplace for higher-end goods might suffer too.