Connect with us

Hi, what are you looking for?

TECH

JD.com shares hit record low, and banks cut Q3 growth target on retail slowdown

The logo of JD.com is seen at the China International Fair for Trade in Services (CIFTIS) in Beijing, China September 1, 2022. REUTERS/Florence Lo/File photo

Following a weaker-than-expected consumer spending rebound, numerous banks and brokers lowered price targets and revenue growth expectations for JD.com (9618. HK), sending shares down 13% to a record low on Friday.

Citi, Daiwa, and Jefferies sent customers memos with altered projections on Thursday and Friday. After Singles’ Day, Hong Kong- and US-listed JD.com will release quarterly financial figures in mid-November.

China’s leading home appliance store, JD.com, had its lowest closing price since June 2020. Premarket trade saw JD shares fall 4.5% and PDD Holdings (PDD.O) fall 1.9%.

After the epidemic, a property sector debt problem slowed China’s economic development, while many Chinese cut down on spending due to economic and employment insecurity, harming the retail industry.

After missing fourth-quarter revenue predictions, JD.com said it would take time to recover customer trust post-pandemic in March. Citi Research cut its third- and fourth-quarter sales assumptions for JD.com by 3.4% and 4.3%, respectively, to 0.8% and 1.3% growth.

The bank’s analysts attributed the estimated drop to a “relatively muted consumption trend, high base, intense competition, and ongoing impact from restructuring adjustment”.”Since September, China has implemented stimulus initiatives to rescue the housing market, but Nomura said JD.com has not seen any major retail improvement since the third quarter.

JD.com declined to comment on analyst revisions and share price performance.

China’s top online retailer of digital and electronic items, such as mobile phones and home appliances, is JD.com.

Its competitors are Aobao, Tmall, and PDD Holding (PDD.O), which runs Pinduoduo; both provide more things at different costs. JD.com filed a police report over internet rumors about a detained businessman maliciously connected to the firm.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.
SUBSCRIBE

You May Also Like

Innovation

Overview Changing the decor in your property shouldn’t be a hard or high-priced challenge. Simple do-it-yourself initiatives can revitalize your residing place with a...

News

More than 40 measure are included in Ofcom’s plan to protect youngsters from content that offers with eating problems, self-damage, suicide, and pornography. Concerns...

Electronics

Presenting the Samsung 65” Class OLED S95C TV—the height of current fashion and stunning visual readability. With a mean rating of 4.1 stars based...

Cars

Tesla’s $500 Million Investment in Expanding Supercharger Network Elon Musk, the CEO of Tesla (TSLA.O), these days declared that the employer can be making...

SUBSCRIBE

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.