JD.com, which entered the food delivery market in February, and Meituan have taken their instant commerce rivalry to another level, as they started building thousands of central kitchens in strategic locations to speed up fulfilment of online food orders.The size and scope of instant commerce also appear unparalleled in China's economic landscape, as the segment covers hundreds of millions of consumers who have grown accustomed to ordering a wide range of products and services online, with expedited on-dema ...

Core Insights - Alibaba Group (BABA) and JD.com (JD) are major players in China's e-commerce sector, each contributing significantly to the digital economy [1][2] - Investors are closely monitoring which platform will deliver stronger and more sustainable growth as China's economy stabilizes [2] Alibaba Group (BABA) - BABA reported revenues of $32.81 billion in Q4 fiscal 2025, marking a year-over-year increase of 6.96% [3] - The company has expanded its loyalty program, 88VIP, to over 50 million members, enhancing user retention [4] - International commerce segment revenues grew by 22% year-over-year, aided by localized supply chains and improved unit economics [5] - Alibaba Cloud revenues increased by 18%, with AI product revenues experiencing triple-digit growth for seven consecutive quarters [6] - A RMB 10 billion investment in instant commerce initiatives has shown promising early results in user engagement [7] JD.com (JD) - JD reported revenues of $41.79 billion in Q1 2025, reflecting a year-over-year growth of 16.01% [8] - The company has seen a 20% year-over-year increase in active customers, driven by enhanced shopping frequency and personalized services [9] - JD's 3P marketplace has expanded, resulting in a 16% year-over-year growth in marketing and marketplace revenues [10] - The food delivery segment is growing, with nearly 20 million daily orders and a strategy of onboarding merchants at zero commission [11] - JD Logistics contributed to an 11% revenue growth, with gross profit rising by 20% and non-GAAP net income increasing by 43% year-over-year [12] Price Performance and Valuation - Year-to-date, BABA shares have increased by 42.4%, while JD shares have decreased by 3.8% [13] - BABA's forward 12-month P/E ratio is 11.13X, compared to JD's 7.63X, indicating higher investor confidence in BABA's growth potential [16] - The Zacks Consensus Estimate for BABA's Q1 fiscal 2026 earnings is $2.48 per share, a 9.73% year-over-year increase, while JD's Q2 2025 earnings estimate indicates a 24.81% decline [20][21] Conclusion - BABA is positioned as a more attractive investment option due to its strong momentum in cloud, AI, and international e-commerce, alongside a balanced business model [22] - JD is facing challenges in profitability due to aggressive investments and losses in new business segments [22]