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JD.Com Gains on Alibaba as Spending Jumps, Profit Estimates Drop

  • Investment in new business lines crimp profitability, margins
  • JD analysts cut EPS ests by 56% in the past four weeks
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JD.com Inc. has been slowly nibbling away at Alibaba Group Holding Inc.’s dominant share of China’s burgeoning online shopping market. And the costs are adding up.

Analysts in the past four weeks have lowered their average profit forecast for JD.com this year to 34 cents per share from 78 cents, data compiled by Bloomberg show. The 56 percent reduction was the biggest in that period among U.S.-traded Chinese companies with a market capitalization of more than $3 billion.