JD.com Shares Are Trading Lower Thursday: What's Going On?

Zinger Key Points

Shares of JD.com Inc JD fell 4.3% to $34.16 Thursday morning, tracking a broader decline in Chinese e-commerce stocks after Alibaba Group reported mixed fiscal fourth-quarter results. Alibaba stock slid 7% to $124.60 despite a better-than-expected earnings beat, as overall revenue disappointed investors.

What To Know: Alibaba reported quarterly revenue of $32.58 billion, up 7% year-over-year but shy of analysts' $33.08 billion estimate. While adjusted earnings per share of $1.73 exceeded expectations, the top-line miss raised concerns about slower domestic consumption and heightened competition.

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Investors appeared to be spooked by weakness in segments like Cainiao Logistics, which saw a 12% revenue decline due to restructuring, and a modest 8% growth in China's core retail business. Although international and cloud businesses showed strong momentum, they weren't enough to offset concerns.

JD.com, often seen as a peer and rival to Alibaba, was pulled lower in a sympathy selloff Thursday, as investors reassessed the outlook for the broader Chinese e-commerce sector. Alibaba's report is potentially casting a shadow over near-term growth prospects, despite ongoing recovery signals in China's consumer market.

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How To Buy JD Stock

By now you're likely curious about how to participate in the market for JD.com – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of JD.com, which is trading at $34.16 as of publishing time, $100 would buy you 2.9 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, JD has a 52-week high of $47.82 and a 52-week low of $24.13.

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$34.27-4.09%

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