Yahoo Finance Live's Julie Hyman discuss first-quarter earnings for JD.com amid the ongoing COVID-19 lockdowns in China.

Video Transcript

JULIE HYMAN: Let's also talk about another mover that we are watching, JD.com. That company, the Chinese e-commerce company, coming out with its numbers and saw better-than-expected 18% revenue growth, China's COVID lockdowns did help online sales to some extent. Sales climbing to on a dollar basis about $35.5 billion, which was ahead of estimates, so that is helping the shares this morning.

But also we have been seeing a general rise in Chinese shares. Remember yesterday J.P. Morgan lifted its recommendation on Chinese internet stocks after having been very negative on them. And then this morning, it looks like there is a symposium that's being held by Chinese officials that's going on today. And we're looking, they haven't come out with any commentary yet but traders were looking for some kind of commentary on the tech sector that would indicate that the regulatory push is indeed coming to a close. So JD is higher but we've also been seeing a rise in stocks like Alibaba for example, Baidu, Pinduoduo-- I can never say Pinduoduo.

BRIAN SOZZI: That's Jared Blikre's flavor, Pinduoduo.

JULIE HYMAN: Pinduoduo, Pinduoduo, Pinduoduo I think is how you say it. Anyway, they're all up today.

BRIAN SOZZI: Well, it was interesting here, I'm going to go back to the Walmart release for a second. First, I wish that JD.com mascot was my avatar, that smiley puppy.

BRAD SMITH: Yeah?

BRIAN SOZZI: That's me in general, every single day.

BRAD SMITH: There's going to be NFT versions of it.

BRIAN SOZZI: There should be. But I want to go back to Walmart because in China they noted gross profit margins down, operating profits down, sales came in worse than expected, and of course, that's because of the lockdown. So I saw while JD is doing OK, that might be more of a one-off because Walmart is noting they did not have a good quarter in China.

BRAD SMITH: Yeah, international sales for Walmart in this most recent quarter down 13%. It was a decrease of $3.5 billion. But bringing that back to JD.com as well, when we think about the net product revenues breakdown that they listed, general merchandise revenues, that was actually up 21% year over year.

That's a category for Walmart that they were already citing some of that slowdown and potentially going to be looking across different product categories to see where they could see that start to come back, where they also might have to institute rollbacks on prices just so that they can get inventories relinquished as well and start to get some of that moving. And then on the net service revenues breakdown, they actually saw that move higher about 25% year over year for their marketplace and marketing revenues. I mention that because that's a high margin business for them in seeing more advertisers come to their website.