JD.com sinks as analysts cut PT, forecast on slow consumer spending
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U.S.-listed shares of JD.com (NASDAQ:JD) fell 5% premarket on Friday after several analysts lowered price targets and revenue forecast for the Chinese e-commerce giant, pointing towards softer-than expected e-commerce growth.
Brokerage Citi lowered its Q3 and Q4 revenue assumption by 3.4% and 4.3% and forecasts net revenue to 245.6 billion yuan and 299.4 billion yuan respectively.
Citi believes that âcautious consumer sentiment and competitive pricing discount likely to weigh on any meaningful rebound of growth for JDâ as it heads to Q4.
Benchmark cuts price target on JD.com to $67 and lowered its 2H23 revenue estimates. The brokerage said that the disruption in association with their business adjustments and organizational restructuring may take longer than expected to normalize.
Macquarie Equity Research downgraded the stock to "neutral" citing weak YTD performance and a challenging macro environment.
"We have low conviction in a strong recovery in growth in 2024 and onward," said Morgan Stanley and cuts JD.com's rating to "equal-weight" from "overweight".
In a separate incident, rumors of arrest of a businessman with the same surname as JD.comâs chairman, also led investors to dump shares of the company. JD.com said on its Weibo account it had lodged a police report over the rumor.
The companyâs Hong Kong shares fell as much as 13% to a record low on Friday. 
Earlier on Thursday, Jefferies also cut its price target on JD.com to $80 from $97, noting that revenue growth is likely to remain flat in the coming quarter. The company has not yet scheduled its third-quarter results.
Wall Street expects JD.com to earn 79 cents per share on a revenue of $34.33B during the third quarter.
The company faces strict competition from rivals including Alibaba (BABA) and PDD Holdings (PDD), making it hard to draw customers at a time when the Chinese economy is still pressured from the effects of COVID-19 pandemic and disrupted supply chains.
Moreover, Beijingâs regulatory crackdown on its tech companies also dampened investor sentiment, wiping off millions of dollars from the tech firmsâ valuations.

Seeking Alpha analysts and Wall Street rated JD.com âbuyâ or higher, while Seeking Alphaâs Quant ratings consider it a âholdâ. The stock fell more than 50% so far this year. 


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