JD.com (JD  ) shares were 8% higher following the company's better than expected Q1 results on the top and bottom line. However, the gains may have been more due to low expectations as the company had its slowest revenue growth in history due to a slowdown in consumer spending as the economy suffers from lockdowns.

Overall, JD shares are down by more than 50% from their all-time high in February 2021. Shares have certainly gotten cheap enough to appeal to value investors, however, investors still face considerable risks and uncertainty. The most potent is the possibility of further crackdowns on Chinese tech companies.

Another is the possibility of SEC de-listing as Chinese and U.S. authorities haggle about various issues. The final is weakness in the Chinese economy due to lockdowns and an unwinding of the property bubble. JD is also a large holding in many tech and momentum funds such as Tiger Global, so its performance could also have larger implications.

Inside the Numbers

In Q1, JD reported a net income of 3 billion yuan which was better than expectations for a 655 million yuan profit. This was a decline from a 3.6 billion yuan profit last year. Revenue was up 18% to 239.7 billion yuan which topped expectations of 236.6 billion yuan.

The company attributed the weakness to a decline in consumer spending due to the lockdowns. Overall, retail sales were down 11% in China in April. Spending on the platform has declined on a per-purchase basis with the drop intensifying in March and April. Other e-commerce companies also showed a sharp slowdown in growth.

JD's retail segment saw a 17% increase in revenue, while logistics had a 22% increase. However, more important than the company's operating results may be signs that the government is ready to ease up on the tech sector after more than a year of pain.

Overall, JD shares do look interesting as the company is very cheap. And, some of the selling of the stock is likely due to liquidations unrelated to the stock's merits. Additionally, it seems increasingly likely that the Chinese government is ready to pivot to focus on the economy after the coronavirus situation improves which should involve measures to juice consumer spending.