Why JD.com Stock Jumped Today
Shares of JD.com (NASDAQ: JD) jumped as much as 5.2% early Thursday then settled to trade up 2.8% as of 3:45 p.m. ET after the Chinese e-commerce giant revealed it's planning sweeping raises for its front-line staff next year.
In a post to its official WeChat account this morning, JD.com said it will nearly double the fixed salaries for its procurement, sales, and other front-line staff beginning Jan. 1, 2024. JD.com also said its retail staff will receive 20%+ pay increases.
The market appears to be taking this development as an encouraging vote of confidence in JD.com's growth trajectory. JD.com has struggled to drive top-line growth in recent quarters -- with revenue last quarter rising a modest 1.7% year over year -- amid fierce competition and macroeconomic uncertainty that has dampened consumer spending in China.
Source Fool.com
