JD.com, Inc. (NASDAQ:JD) reports a loss due to its acquisition costs

JD.com, Inc. (NASDAQ:JD), the second largest e-commerce company of China, reported a net loss in its quarterly reports. The loss resulted due to JD.com, Inc.’s (NASDAQ:JD) partnership costs; the company recently entered into a partnership agreement with Tencent Holdings Ltd. The costs of JD.com, Inc. (NASDAQ:JD) also increased due to its operational spending in order for the company to compete better against the e-commerce leader company, Alibaba Group Holdings Ltd.

Shares of JD.com, Inc. (NASDAQ:JD) decreased by 2.2 percent and reached to $29.35 during the early morning trading session on the last trade day, August 15, 2014.

The company went public in May, and it was the first time that JD.com, Inc. (NASDAQ:JD) reported its quarterly figures. The company’s loss reached to 582.5 million Yuan- approximately $93.9 million. The figures were quite bad when compared with the numbers of the same quarter, a year back; last year, JD.com, Inc. (NASDAQ:JD) reported a loss of 28.3 million Yuan.

Coming to the expenses of JD.com, Inc. (NASDAQ:JD), the figures, during the recent quarter, increased by 66 percent and reached to 29.4 billion Yuan.

JD.com, Inc. (NASDAQ:JD) said that the company saw a loss due to the costs of acquisitions as well as the amortization of the company’s assets.

Tencent Holdings Ltd, the biggest social media and mobile gaming company in China, purchased 15 percent of the shares of JD.com, Inc. (NASDAQ:JD) in order to make its position strong in the market and better compete against its rival, Alibaba Group Holdings Ltd. Tencent, later on, increased its stake in JD.com, Inc. (NASDAQ:JD) up to 17.6 percent when the company went public in May.

JD.com, Inc. (NASDAQ:JD), during its earnings call, predicted the capital expenditures for the year 2014 to reach 3.5 to 4.5 billion Yuan- that makes around 569-732 million U.S. Dollar.

The loss per ADR of JD.com, Inc. (NASDAQ:JD) has increased, which reflects the conversion to ordinary shares from preferred shares that the company made before it went public.

However, the adjusted earnings of JD.com, Inc. (NASDAQ:JD) were far better than what the analysts had expected. After adjustments, the company reported a loss of 0.01 Yuan per ADS. Similarly, the revenues of the company rose by 64 percent and reached to 28.61 billion Yuan. Market had expected adjusted revenue of $4.39 billion with a loss of 2 cents for each ADR.

The value of the goods that were sold by the company reached to $10.2 billion whereas the orders fulfilled by the company also doubled during the quarter and reached to $163.7. Moreover, the accounts of active customers increased from $19.6 million to $38.1 million.

JD.com, Inc. (NASDAQ:JD) said that it expected the revenues to rise by 55 to 61 percent and reach to 28 to 29 billion Yuan.

Coming to the stock prices of JD.com, Inc. (NASDAQ:JD), the company, on the last trade day, opened its stocks at a price of $28.60 and closed at a price of $29.58. As far as the beta of the company is concerned, the numbers are recorded to be around 1.79. The company has a one year target price of $35 on its stocks.