Shares of JD.com Inc. /zigman2/quotes/205122565/composite JD -4.59% soared 7.8% in premarket trading Tuesday, after the ecommerce company reported big profit and revenue beats, as improving user engagement metrics helped offset a "challenging" operating environment. The company swung to a net loss of RMB2.99 billion ($472 million), or RMB1.92 per American depositary share (ADS), after net income of RMB3.62 billion, or RMB2.25 per ADS, in the year-ago period. Excluding nonrecurring items, adjusted profit per ADS of RMB2.53 was well above the FactSet consensus of RMB1.65. Total revenue grew 18.0% to RMB239.66 billion ($37.81 billion), beating the FactSet consensus of RMB235.90 billion. "JD.com's robust supply chain capabilities and technology-driven operating efficiency underpinned our solid performance during the quarter as we continued to deliver healthy growth amidst a challenging external environment," said Chief Executive Lei Xu. JD's stock was also benefiting from a broad rally in ADS of China-based companies, after signs of progress in efforts to control COVID-19. And on Monday, J.P. Morgan upgraded many China-based internet companies, including JD to neutral from underweight, as significant uncertainties facing the sector begin to fade in the wake of recent regulatory announcements. JD's stock has dropped 26.5% year to date through Monday, while the iShares MSCI China ETF /zigman2/quotes/206267952/composite MCHI -1.49% has shed 23.2% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.36% has lost 15.9%.