China's number two e-commerce website JD.com reported a big quarterly net loss, sending shares lower, as it fights against giant Alibaba. Bobbi Rebell reports.
Alibaba rival JD.Com, China's number two e-commerce company, is losing more money as it spends to battle Alibaba. JD.Com reported its first results as a publicly traded company and their loss of $94 million reveals a company very aware it needs to up its game, if it wants to hold its own against the top Chinese e-commerce company. JD.com was also hit by costs associated with a partnership with mobile gaming and social media company Tencent. Sidney Huang, JD.com's Chief Financial Officer saying: "We will continue to invest strategically in fulfillment infrastructure, technology and new business initiatives to further strengthen our leadership in China's direct B2C e-commerce market." The top line looks good. JD.com reported a 64 percent rise in quarterly revenue. The number of active users nearly doubled. And the gross value of goods sold more than doubled to more than $10 billion. Shares were slightly lower in early trading. JD.com's ADR's have gained about 44 percent since the company went public in May. Alibaba's IPO is expected in the coming weeks, but said Friday a review of its finances revealed possible accounting irregularities tied to its film unit, in which it bought a stake just a couple of months ago.