JD.com, Inc.

“JD.com trades at trough multiples and holds net cash, but the investment case is undermined by a 91% collapse in FY2025 operating income that has no clear explanation, a moat that is structurally narrowing against Pinduoduo and Douyin, persistently low ROIC that precludes compounding, dual-class governance that insulates management from accountability, and a VIE structure that creates a binary permanent-loss scenario for foreign shareholders that is not priced into any valuation model. The stock is cheap, but cheap-for-reason — capital is better deployed in businesses with higher-quality economics and fewer unrecoverable loss paths.”