JD.com Stock Tanked Nearly 20% Last Quarter, but One Fund Still Bought Up $6 Million in Shares

On February 12, 2026, North of South Capital LLP disclosed it bought 180,081 shares of JD.com (NASDAQ:JD) in the fourth quarter, an estimated $5.63 million trade based on quarterly average pricing.

What happened

According to a SEC filing dated February 12, North of South Capital LLP increased its stake in JD.com by 180,081 shares during the fourth quarter of 2025. The estimated value of this purchase, based on the average closing price for the period, is $5.63 million. Meanwhile, the quarter-end value of the JD.com position fell $20.41 million, reflecting both the additional shares and changes in the stock price, which tanked nearly 20% last quarter.

What else to know

Top holdings after the filing:

• NYSE: IBN: $220.18 million (19.8% of AUM)
• NYSE: TSM: $137.90 million (12.4% of AUM)
• NASDAQ: JD: $122.06 million (11.0% of AUM)
• NYSE: YMM: $116.40 million (10.5% of AUM)
• NYSE: PAAS: $111.27 million (10.0% of AUM)

As of February 11, shares of JD.com were priced at $28.27, down 28.7% over the past year and underperforming the S&P 500 by 43.09 percentage points.

Company overview

Company snapshot

• JD.com offers a broad portfolio of products, including electronics, home appliances, general merchandise, and online healthcare services, with logistics and technology-driven supply chain solutions as key revenue drivers.
• The company operates a supply chain-based technology and service platform, generating revenue through direct online retail, third-party marketplace services, logistics, and value-added services for merchants and enterprises.
• It serves consumers across the People's Republic of China, targeting both individual customers and business clients through its omni-channel and digital solutions.

JD.com is one of China's largest technology-driven retailers, distinguished by its integrated logistics network and extensive product assortment. The company leverages proprietary infrastructure to provide efficient, reliable delivery and supply chain services at scale. Its focus on technology and end-to-end control of logistics operations supports a competitive edge in customer experience and operational efficiency.

What this transaction means for investors

Conviction shows up when a fund adds to a top-three holding during a drawdown, and that’s exactly what happened here. Even after JD.com shares slid nearly 20% in the fourth quarter, North of South’s position still stands at $122.06 million, about 11% of reported assets, making it one of the portfolio’s core bets alongside ICICI Bank and TSMC.

Operationally, the story is more nuanced than the stock chart suggests. Third-quarter net revenues rose 14.9% year over year to RMB299.1 billion, with service revenue up 30.8%. General merchandise revenue climbed 18.8%, and JD Retail expanded its operating margin to 5.9%. Still, group operating margin flipped negative as marketing expenses more than doubled and fulfillment costs rose, reflecting heavy investment in new initiatives.

For long-term investors, the question is whether those investments translate into durable ecosystem growth. Annual active customers surpassed 700 million, and the company still generated RMB12.6 billion in trailing 12-month free cash flow.

Ultimately, this is a concentrated position layered on top of other emerging-market holdings, and if JD stabilizes margins while sustaining double-digit revenue growth, today’s depressed valuation could look far more attractive than the recent headline volatility suggests

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool recommends JD.com. The Motley Fool has a disclosure policy.