Why JD.com Stock Dropped 10% This Week
Shares of JD.com (NASDAQ: JD) fell 9.8% this week, according to data provided by S&P Global Market Intelligence, as analysts mulled the implications of worrisome economic data coming out of China for the Chinese e-commerce leader.
On Wednesday, China's National Bureau of Statistics announced the country's economy grew by 5.2% year over year in the period from October to December, falling slightly short of expectations for 5.3%. The mainland Chinese CSI 300 index plunged to a five-year low on the news, dragging popular Chinese stocks like JD down with it.
Meanwhile, analysts at Wall Street firm further fueled JD's decline on Thursday by reduced the firm's per-share price target for the stock from $40 to $35. While Mizuho also reaffirmed its buy rating on JD shares, its analysts worried that consumer spending in China would "remain subdued" despite record-high savings rates, given the country's real estate industry headwinds and rising unemployment.
Source Fool.com
