JD.com beat Wall Street’s estimates for its quarterly revenue on Tuesday, as it enjoyed an ecommerce resurgence during a recent lockdown in China after a recent Covid outbreak.
US-listed shares of the Beijing-based ecommerce giant climbed nearly 8% in premarket trading as a result.
The company’s rivals Alibaba and Pinduoduo saw a 7% and 8% increase respectively.
The recent Covid-19 outbreak prompted shares to return to similar levels seen during the first lockdown after the virus appeared in late 2019.
JD reported revenue of 239.66 billion yuan ($35.57 billion) for the quarter ended March 31, compared to analysts’ estimates of 236.66 billion yuan, according to IBES data from Refinitiv.
Excluding items, JD.com posted a profit of 2.53 yuan per American depository share (ADS), compared with analysts’ expectations of 1.62 yuan.
The net loss attributable to ordinary shareholders stood at 2.99 billion yuan, compared with a profit of 3.62 billion yuan a year earlier.
“We consider JD’s long-term story to be intact, backed by its core competence and solid execution despite short-term headwinds from the recent COVID outbreak,” a Jefferies research report published on May 4 said.