JD.com Stock Is Down Tuesday - What's Going On

JD.Com, Inc JD stock traded lower Tuesday amid reports of its longer-term vision for a sprawling business that now spans logistics, health care, e-commerce, and online finance.

The company plans to create seven listed firms with at least 100 billion yuan ($14 billion) a piece market values, Bloomberg cites in an internal letter to employees.

The company already has several listed affiliates, including JD Health International Inc and JD Logistics Inc, both in Hong Kong. In 2023, another two subsidiaries — Jingdong Property Inc and Jingdong Industrials Inc — applied for listing on the Hong Kong Stock Exchange.

Also Read: JD.com Fails To Impress Investors, They Flock To Alibaba For Sharper Turnaround

The leading online commerce firm also aims to have three companies with sales exceeding 1 trillion yuan and a net profit of more than 70 billion yuan.

JD proposes to pay out more than 3 trillion yuan in salaries and benefits for frontline staff over the next two decades. It also plans to pay 100 billion yuan in taxes and provide more than 1 million jobs, while it is targeting to include five businesses in the world's top 500 companies. 

During its "6.18" June online bargains event, an important barometer of Chinese consumer spending, the company's sales volume surged to a record high.

Chinese retail sales grew 12.7% in May but were down from April, along with disappointing data on unemployment and investment, indicating the second-largest economy's struggle to regain footing.

Despite intensified competition and restructuring impact, Citigroup analysts believe JD's overall 6.18 performance will likely exceed their initial 2-5% yoy growth estimate. They estimate a possible 6-8% growth year-on-year this year.

Price Action: JD shares traded lower by 4.27% at $38.15 premarket on the last check Tuesday.

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