JD.com Inc.'s stock rallied 5.09% on Thursday, outperforming the broader market during the intraday trading session. The surge came as short interest in the company's US-listed shares fell to 0.9% of total shares outstanding, signaling a retreat in bearish bets.
The rally can be attributed to the anticipated release of JD.com's December quarter earnings report, which is expected to show an 8.5% year-over-year increase in sales. This growth is likely driven by Beijing's consumer trade-in subsidies and strong performance during the Singles' Day shopping festival.
Investors will also be closely monitoring JD.com's investment in its new food delivery business and its ability to compete with rival Meituan in this highly competitive market. The company's strong performance has led to increased bullish activity in the Hong Kong options market, with traders opening new call positions expiring in May.
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