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JD.com Stock Jumps in Premarket Trading on $5 Bln Buyback PlanJD.com, (NASDAQ: NASDAQ:JD ) one of China’s largest e-commerce giants, made headlines this week with the announcement of a substantial $5 billion share buyback program, effective from September 2024 to August 2027. This move has sent positive ripples through the market, with U.S.-listed shares of JD.com jumping over 4% in premarket trading. But what does this mean for investors, and how does it align with the broader market dynamics? JD.com's Bold Decision JD.com’s decision to implement a $5 billion share repurchase program is a bold signal of confidence from the company’s leadership. The buyback is JD.com's second major repurchase initiative this year, following a $3 billion repurchase in March 2024, which the company fully utilized within just five months. This rapid execution highlights JD.com’s commitment to enhancing shareholder value, even in a challenging economic environment. The timing of this buyback is particularly noteworthy. It comes shortly after Walmart’s decision to sell its entire $3.7 billion stake in JD.com (NASDAQ: NASDAQ:JD ), a move that raised concerns about the e-commerce giant’s future in the world’s second-largest economy. The announcement of the buyback has helped mitigate some of these concerns, showcasing JD.com’s robust financial position, supported by a cash reserve of $20.2 billion. Citi analysts, who had anticipated this move, placed JD.com on a 30-day upside Catalyst Watch, citing the company’s aggressive buyback pace as a key factor in maintaining investor interest. The analysts also maintained a "Buy" rating on JD.com, underscoring the stock’s attractive valuation. Technical Analysis: A Mixed Signal for Traders From a technical perspective, JD.com’s stock shows both promise and caution. The stock's recent premarket surge of over 4% is encouraging, but it also reveals underlying concerns. As of Monday’s close, JD.com’s Relative Strength Index (RSI) stood at 43.67, placing the stock in a potentially oversold region. This indicates that while the stock has experienced downward pressure, there may be limited buying momentum to sustain a prolonged uptrend. For a sustained bullish reversal, JD.com (NASDAQ: NASDAQ:JD ) would need to break through key technical levels. The immediate pivot point is at $27.52, a level that, if breached with strong buying volume, could confirm a resurgence in price. However, the stock's current RSI suggests that any bullish momentum might be short-lived unless supported by broader market conditions and positive news flow. The stock is also trading below its 50-day moving average, which typically signals a bearish trend. However, the recent buyback announcement could act as a catalyst for the stock to test this moving average in the coming days. If JD.com (NASDAQ: NASDAQ:JD ) can sustain its price above this level, it would be a positive signal for long-term investors. Market Context: Navigating a Sluggish Chinese Economy JD.com’s buyback plan comes at a time when China’s retail market is grappling with macroeconomic challenges. The ongoing property slump, consumer spending hesitancy, and employment uncertainties have made it difficult for even the largest players to maintain growth. This is evident from the recent market reaction to PDD Holdings’ earnings report, which wiped $55 billion from its market cap and dragged down other Chinese e-commerce stocks, including JD.com. Despite these challenges, JD.com’s buyback strategy demonstrates the company’s resilience and its commitment to returning capital to shareholders. It also reflects the broader trend among Chinese tech giants, like Alibaba, which announced a $25 billion share buyback earlier this year, to use buybacks as a tool to stabilize stock prices amidst economic uncertainty. Conclusion: A Calculated Bet with Cautious Optimism JD.com’s $5 billion share buyback plan is a calculated bet to instill confidence in the market and support its stock price amid a challenging economic backdrop. For investors, this move signals JD.com’s financial strength and its willingness to reward shareholders, despite external pressures. However, from a technical standpoint, caution is warranted. While the stock’s recent premarket surge is a positive development, the underlying technical indicators suggest that a sustained uptrend may require more robust buying momentum. Investors should keep a close eye on key technical levels, particularly the $27.52 pivot point, and monitor broader market conditions as JD.com navigates the complexities of China’s economic landscape. In summary, JD.com’s buyback plan is a positive fundamental development, but the stock's technical signals urge a cautious approach. Investors with a long-term view may find value in JD.com, but those with a shorter horizon should watch for confirmation of a bullish reversal before committing capital.
NASDAQ:JDLong
by DEXWireNews
38
JD.com Stock Plummets 10% on Walmart Sellout Key Points: - Walmart to sell its 9.4% stake in JD.com ( NASDAQ:JD ), raising up to $3.74 billion. - The move aligns with Walmart’s strategy to focus on its core Chinese operations, including Walmart China and Sam’s Club. - JD.com’s shares plummet over 10% in Hong Kong following the announcement, highlighting the fragility of Chinese tech stocks. Walmart’s Move In a significant strategic shift, Walmart has confirmed its intention to sell its 9.4% stake in Chinese e-commerce giant JD.com. ( NASDAQ:JD ) The decision, which could raise up to $3.74 billion, underscores Walmart's renewed focus on strengthening its core operations in China, specifically its Walmart China and Sam’s Club brands. This move marks the end of an eight-year partnership between the two retail giants, a relationship that was once seen as a gateway for Walmart to tap into China’s burgeoning e-commerce market. Walmart’s decision to divest from JD.com ( NASDAQ:JD ) comes as part of a broader strategy to redeploy capital towards other priorities. A spokesperson for Walmart told CNBC, "This move allows us to focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities." Despite the sale, Walmart emphasized its commitment to maintaining a commercial relationship with JD.com, reflecting the value both companies have seen in their partnership over the years. Impact on JD.com The announcement had an immediate and severe impact on JD.com’s stock price. Shares of JD.com plummeted over 10% in Hong Kong and fell 9.5% in after-hours trading in the U.S., making it the largest loser on Hong Kong’s Hang Seng Index. The sharp decline highlights the vulnerability of Chinese tech stocks, which have been battered by market volatility and economic uncertainties. The sale of Walmart’s stake in JD.com ( NASDAQ:JD ) is being priced between $24.85 and $25.85 per share, representing a discount of up to 11.8% compared to JD.com’s closing price in the U.S. on Tuesday. This pricing strategy signals the challenges JD.com faces in maintaining investor confidence amid a rapidly changing economic landscape in China. The End of an Era Walmart first acquired a 5% stake in JD.com ( NASDAQ:JD ) in 2016, entering into a strategic alliance that was expected to benefit both companies. For Walmart, the partnership was a way to tap into China’s fast-growing e-commerce market, while JD.com ( NASDAQ:JD ) gained access to Walmart’s extensive retail expertise and global supply chain. Over the years, Walmart increased its stake in JD.com ( NASDAQ:JD ), reaching 9.4% by March 31, 2023, with over 289 million shares. However, the economic environment in China has shifted dramatically since the partnership began. The once-promising alliance has delivered diminishing returns as JD.com struggled to maintain its growth trajectory amid a challenging market environment for Chinese tech companies. JD.com’s recent earnings results for the June quarter showed only a 1.2% growth in revenue, reflecting the difficulties the company faces in sustaining its momentum. The company's market value has halved since early 2022, a stark indication of the challenges it now faces. Walmart’s Future in China Walmart’s decision to sell its stake in JD.com ( NASDAQ:JD ) reflects a broader trend among multinational corporations to reassess their investments in China amid growing economic and regulatory challenges. By focusing on its core Chinese operations, Walmart aims to strengthen its position in the country’s retail market, particularly through its Walmart China and Sam’s Club brands, which continue to perform well. The sale of JD.com ( NASDAQ:JD ) shares will provide Walmart with significant capital that can be redeployed to enhance its retail operations in China, invest in new technologies, and pursue other strategic priorities. While the sale marks the end of an era for Walmart and JD.com, it also signals a new phase for both companies as they navigate the complexities of China’s evolving market. Technical Outlook At the time of this writing, shares of JD.com ( NASDAQ:JD ) are experiencing a notable decline, having dropped 7.9% during the premarket trading session on Wednesday. This decline has resulted in a relatively weak Relative Strength Index (RSI) reading of 48, which suggests some underlying weakness in the stock's momentum. When examining the daily price chart, there is a distinct gap down that has formed, signaling a robust bearish reversal pattern, which raises concerns for investors. Should the stock price continue to depreciate and fall below its one-month low, this movement could trigger a considerable amount of selling pressure from traders and investors alike, potentially resulting in further erosion of JD.com’s stock value. Moreover, it is important to note that JD.com ( NASDAQ:JD ) is currently trading below its 50-day, 100-day, and 200-day Moving Averages (MA), which further consolidates a bearish outlook for the stock. This positioning below these crucial moving averages is often interpreted by market participants as a sign of ongoing weakness, leading to a lack of investor confidence and potentially prompting more sellers to enter the market. The combination of these factors paints a challenging picture for JD.com as it navigates these troubling market conditions. Conclusion Walmart’s decision to sell its stake in JD.com ( NASDAQ:JD ) is a calculated move that reflects the company’s strategic priorities and the shifting economic landscape in China. As JD.com ( NASDAQ:JD ) faces increasing challenges in maintaining its growth, Walmart’s focus on strengthening its core Chinese operations could position the retail giant for sustained success in one of the world’s most dynamic markets. The implications of this sale will be closely watched by investors and market analysts as both companies chart their respective futures in a rapidly changing environment.
NASDAQ:JDShort
by DEXWireNews
JD.com Shares Surge 5.7% as Earnings Beat ExpectationsJD.com (NASDAQ: NASDAQ:JD ) shares experienced a significant uptick, climbing 5.7% on Friday after the Chinese e-commerce giant reported better-than-expected quarterly earnings. The company’s impressive performance was driven by strategic price cuts that successfully attracted cost-conscious consumers, despite a challenging economic environment in China. Earnings Boost Amidst a Competitive Landscape For the quarter ending June 30, JD.com (NASDAQ: NASDAQ:JD ) reported a 92% year-over-year increase in net income, reaching 12.64 billion yuan (approximately $1.77 billion). This surge in profitability comes despite a modest revenue growth of just 1.5% to 257 billion yuan. The results highlight JD.com's ability to maintain its profitability even as China’s e-commerce sector faces intense competition and sluggish consumer spending. JD.com’s Chief Financial Officer, Ian Su Shan, attributed the strong financial performance to the company's focus on enhancing price competitiveness through a disciplined supply chain approach, rather than relying heavily on subsidies. This strategy has not only helped JD.com (NASDAQ: NASDAQ:JD ) maintain its market position but also led to a substantial increase in gross margin by 137 basis points, reaching a record 15.8% in the quarter. The Surge in Share Price: A Closer Look Friday’s 5.7% surge in JD.com’s share price was a welcome relief for investors, especially considering the stock had been down 8% year-to-date and 28% over the past 12 months. The positive market reaction underscores investors’ confidence in JD.com’s ability to navigate the challenges of a weakened Chinese consumer market. However, this rapid price increase has pushed JD.com’s Relative Strength Index (RSI) to 66, suggesting the stock is approaching overbought territory. The Relative Strenght Index (RSI), a momentum oscillator that measures the speed and change of price movements, indicates that a reading above 70 typically signals overbought conditions, potentially leading to a price correction. With the current RSI at 66, investors should be cautious as the stock flirts with this critical threshold. Navigating a Weak Consumer Market JD.com’s strong quarterly results come at a time when major Chinese e-commerce players, including Alibaba, are grappling with a slowdown in consumer spending. Alibaba’s latest earnings also reflected this trend, with revenue from its China platforms showing minimal growth. This has led to a highly competitive environment, with e-commerce platforms like JD.com (NASDAQ: NASDAQ:JD ), Alibaba, and Pinduoduo fiercely battling for the attention of increasingly value-conscious consumers. Despite these challenges, JD.com (NASDAQ: NASDAQ:JD ) has managed to differentiate itself by focusing on next-day delivery and higher-priced products, leveraging its in-house logistics capabilities. This approach has resonated with a segment of Chinese consumers who value convenience and quality, helping JD.com maintain its market share amidst the broader economic slowdown. What’s Next for JD.com? As JD.com’s ability to sustain its recent momentum will be closely watched. The recent surge in share price, while encouraging, raises questions about the sustainability of this rally, especially given the approaching overbought conditions indicated by the RSI. For now, JD.com (NASDAQ: NASDAQ:JD ) remains a formidable player in China’s e-commerce sector, with a proven ability to adapt to changing market conditions. However, investors should remain vigilant, keeping an eye on both the stock’s technical indicators and the broader economic environment in China. In conclusion, while JD.com’s latest earnings report and subsequent stock price surge are positive signs, the current RSI level suggests caution may be warranted. The company’s focus on price competitiveness and logistics efficiency has paid off, but with the stock nearing overbought territory, a period of consolidation or even a pullback could be on the horizon. Investors will need to weigh the potential for continued gains against the risks of a market correction as they consider their positions in JD.com (NASDAQ: NASDAQ:JD ).
NASDAQ:JDLong
by DEXWireNews
FXI - iShares China Large-Cap ETF... FXI stock is a strong buy due to China's rapid economic growth, diverse portfolio of leading companies, and potential for high returns. Investing in FXI offers exposure to China's expanding market. 9988.HK Alibaba Group Holding Limited 9.72% 0700.HK Tencent Holdings Limited 8.73% 3690.HK Meituan 8.09% 00939 00939 7.08% 01398 01398 4.74% 03988 03988 4.26% 9999.HK NetEase, Inc. 4.00% 1810.HK Xiaomi Corporation 3.77% 9618.HK JD.com, Inc. 3.73% 01211 01211 3.51% FXI stock is a strong buy because while the US and Europe have experienced an incredible bull run, China's market hasn't seen the same gains. This offers a unique opportunity for potential growth and high returns.
AMEX:FXILong
by Maximus20000
JD.com (JD): Key Levels to Watch for Potential ReversalJD.com has seen the expected drop towards the High Volume Node and Point of Control (POC) on the daily and three-day charts, between $27.50 and $26.80. Now, the price is falling further, and we think the lowest it could go is $24.65. This area is about $1 wide, and if it goes below that, it might drop to $20. Current Situation: The current situation shows the main support levels between $27.50 and $26.80. We believe the maximum downside is around $24.65. If it drops below this level, it could fall to $20. This support area is important because a lot of trading happened here, so it’s a key level to watch. Possible Scenarios: There are two possible scenarios: a continued decline or a bullish reversal. If the price keeps dropping, it's best to wait until we see some signs of strength. If it falls below $24.65, it could go down to $20. For the price to go up again, JD.com needs to get back above the resistance between $35 and $38. This would show a possible upward trend. Strategy: Our plan is to wait to see if the price shows some strength in the current support area. If it keeps falling, we should avoid entering the market. We need to keep an eye on the $24.65 level for any signs of a bigger drop. Also, watch if the price goes back above $35-$38 to signal a possible upward move. We are closely watching the current support area and will wait for signs of strength before making any decisions. We won't be catching falling knives at the moment, and if the price drops below $24.65, we expect it to fall towards $20. On the other hand, if it goes above $35-$38, it might start a bullish trend.
NASDAQ:JDLong
by freeguy_by_wmc
JD.com (JD): Key Levels to Watch Amid Potential BreakoutFor the Chinese stock JD.com listed on the Nasdaq, we observe a significant pattern. Initially, we had a prolonged sideways movement that concluded with an initial surge, establishing the current resistance zone. This zone held twice before the price fell through. Starting from point X in our Elliott Wave count in November 2018, we saw a rapid increase of approximately 470% in a short period. However, this was followed by a steep sell-off, leading to the formation of Wave (2) within a trend channel. The correction's time horizon places it in the perfect zone, typically between 2 and 2.618 on the higher time frame, which is a good indicator that this could indeed be Wave (2). To continue the upward movement, it is crucial for JD.com to flip this resistance zone. The current question is whether the price will first return to the High-Volume Node Point of Control (POC) or break out upwards directly. Flipping the support-resistance zone will be key for any significant upward momentum. We'll be closely monitoring these levels to determine the next move. Zooming in on the 12-hour timeframe, we can observe the scenario at the end of the assumed Wave (2). This pattern is characteristic of what we like to see at the conclusion of Wave 2. Initially, we experienced an accumulation phase, which transitioned into a manipulation phase, followed by an expansion phase. This sequence is generally a positive sign. Currently, we are witnessing a pullback after touching the resistance level. Despite this, we maintain our outlook that the price should continue to rise and not retest the $20 mark. There's a breakout gap that partially filled but remains open near the bottom. This gap formed just before we entered the expansion phase, and it's a critical point to consider. Given the ongoing volatility in the Chinese market and the uncertainty among investors, we remain cautious. We are closely watching how JD.com behaves within the $24.50 to $26.80 range. With a drop towards the gap close near $21, we will consider making significant buys. If the price breaks out upwards, we will look for opportunities to enter positions.
NASDAQ:JDLong
by freeguy_by_wmc
3
JD | Strong Base for Launch Higher | LONGJD.com, Inc. is a technology-driven E-commerce company. It engages in the sale of electronics products and general merchandise products, including audio, video products, and books. It operates through the following segments: JD Retail, JD Logistics, and New Businesses. The JD Retail segment offers online retail, online marketplace, and marketing services. The JD Logistics segment includes internal and external logistics businesses. The New Businesses segment is composed of JD Property, Jingxi, overseas businesses and technology initiatives. The company was founded on June 18, 1998 by Qiang Dong Liu and is headquartered in Beijing, China.
NASDAQ:JDLong
by DivergenceSeeker
2
JD.com Resurgence: Surpassing Expectations JD.com (NASDAQ: NASDAQ:JD ), the Chinese e-commerce giant, has emerged victorious in the face of economic headwinds, defying expectations with impressive fourth-quarter revenue figures that have ignited a surge in investor confidence. With shares soaring 15% , JD.com's strategic maneuvers and resilience in a challenging market landscape have captured the attention of analysts and stakeholders alike. The company's success in the final quarter of 2023, buoyed by aggressive price cuts and heavy discounts during China's renowned Singles Day shopping festival, underscores its ability to adapt and thrive amidst economic turbulence. Despite China's shaky economic growth and concerns surrounding youth unemployment and stagnant wages, JD.com's ( NASDAQ:JD ) innovative approach to stimulating consumer demand has yielded remarkable results. Chief Executive Sandy Xu Ran's announcement of plans to expand JD.com's international presence marks a pivotal moment in the company's trajectory. With a keen focus on supply chain optimization, JD.com ( NASDAQ:JD ) aims to establish itself as a global powerhouse, leveraging its distinct business model and competitive advantages to penetrate new markets. The prospect of JD.com's ( NASDAQ:JD ) potential acquisition of UK electronics retailer Currys further underscores its commitment to international expansion. As the company seeks to diversify its revenue streams and mitigate risks associated with domestic market fluctuations, analysts anticipate a strategic move that could bolster JD.com's ( NASDAQ:JD ) global footprint and drive long-term growth. JD.com's ( NASDAQ:JD ) stellar quarterly performance, with net revenue surpassing analyst estimates at 306.1 billion yuan ($42.52 billion), reflects its enduring popularity among cost-conscious consumers. Despite concerns stemming from an internal audit of its Dada Nexus unit, JD.com's overall revenue remains robust, alleviating investor apprehensions and reaffirming confidence in the company's resilience. Moreover, JD.com's ( NASDAQ:JD ) announcement of a $3 billion share repurchase program underscores its commitment to enhancing shareholder value and capitalizing on market opportunities. With its U.S.-listed shares experiencing a recent downturn, JD.com's proactive measures signal a strategic pivot towards revitalizing investor sentiment and unlocking future growth potential. As JD.com ( NASDAQ:JD ) reports a net income attributable to shareholders of 3.4 billion yuan, marking a significant increase from the previous year, the company's trajectory appears poised for further success. With a steadfast focus on innovation, expansion, and shareholder value, JD.com ( NASDAQ:JD ) continues to navigate the complexities of the global market with confidence and determination.
NASDAQ:JDLong
by DEXWireNews
$PDD - Rising Trend Channel [MID-TERM]🔹Moving average indicator has provided a POSITIVE signal, indicating a continued upward trend. 🔹Resistance at 104 could potentially trigger a NEGATIVE reaction, but an upward breakthrough of 104 indicates a POSITIVE signal. 🔹Once breakout resistance at 46 is considered a POSITIVE signal. 🔹Technically POSITIVE for the medium long term. Chart Pattern: ◦ DT: Double Top | BEARISH | 🔴 ◦ DB: Double Bottom | BULLISH | 🟢 ◦ HNS: Head & Shoulder | BEARISH | 🔴 ◦ REC: Rectangle | 🔵 ◦ iHNS: inverse head & Shoulder | BULLISH | 🟢 Verify it first and believe later. WavePoint ❤️
NASDAQ:PDDLong
by wavepoint99
JD is it a safe short or an early reversal?JD on the 1H chart has been in a solid downtrend worthy of shorting. However, the zero-lag MACD shows a line cross under the histogram and a red to green there. The signal has curled. This looks like subtle divergence. Price is in the area of the mean anchored black VWAP lines. The mass index indicator is double tapping the reversal zone. So, what you think? Is there more downside or instead is JD going to bounce and move up? Please offer your comment !
NASDAQ:JDLong
by AwesomeAvani
JD.com Inverted H&SJD.com has created an inverted H&S pattern over the summer and is attempting to break above the neckline. This isn't a textbook H&S since the neckline hasn't been a hard resistance level for price when looking at the violation above the neckline at the right shoulder, but that appears to have been an outlier with a gap up and almost immediate gap back down below the neckline. Although not textbook, this pattern is similar enough to warrant attention as price is currently attempting a break above the neckline. The PPO indicator shows the green PPO line rising above the purple signal line which indicates short-term bullish momentum. Both lines trending above the 0 level indicates intermediate to long-term bullish price momentum. Going forward we want to see the green PPO continue to rise above the signal line. The TDI indicator shows the green RSI line rising and crossing above the 60 level while trending inside the upper half of the white Bollinger Bands. This indicates a short-term bullish trend in price. Going forward we want to see the green RSI line continue to rise above the 60 level, with an overall trend between the 40-80 levels to indicate intermediate to long-term bullish price trend. My entry on this trade was at $38.98 with a current stop-loss at $35.57. Should price break above the neckline and continue to rise I'm looking at resistance near the 200ma at the $45 area to take profit, but am also going to be watching for a potential measured move near the $48 level if price manages to push through the 200ma with ease.
NASDAQ:JDLong
by PrepForProfit
Is JD a Chinese economy equity setting up a reversal?JD on the long term weekly chart appears to be in a descending wedge pattern which would generate a bias for a breakout upside. Price is now supported by the one standard deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term volume profile is that the Point of Control is just below price and that the vast majority of trading volume has been above the current price. I can readily presume that JD is at or near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames such as the weekly are more likely to be accurate with good signals. On the MACD signals have crossed in mid-May and now ascending in parallel toward the zero line while price is bouncing around at what I will call the bottom. Said another way, the MACD is showing bullish divergence. The upside here over a long term could be as much as 250% and much much more with a long expiration options contract. I will open a long trade here in a small position with a stop loss below the POC line and DTA into it over time whenever there is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.
NASDAQ:JDLong
by AwesomeAvani
4
$PDD - The Appeal 🔥 NASDAQ:PDD appealing setup - remaining subdued throughout the day, setting the stage for a potentially stronger push. If it surpasses $82.83, we can expect a move towards $84, followed by a possible pullback before attempting to test the 61.8% retracement level at $88.45 (gap fill). PDD's showing promise with the recent distribution of $697 million USD in deep discounts to generate consumer demand. The extended rally is also fueled by China stimulus hopes ( NYSE:BABA , NASDAQ:JD and major Chinese tickers are witnessing the same effect).
NASDAQ:PDDLong
by theapearmy