Shares of JD.com Inc. (NASDAQ) experienced a significant decline in after-hours trading on Tuesday, dropping over 9% to $25.50, the lowest in more than two weeks. The sharp fall followed a Bloomberg report revealing that Walmart Inc. (NYSE) intends to sell its substantial stake in the Chinese e-commerce giant.
Walmart is reportedly seeking to raise approximately $3.74 billion through the sale of 144.5 million JD.com shares, priced between $24.85 and $25.85 each. This move by Walmart comes at a time when JD.com was showing signs of recovery, with shares recently rallying on stronger-than-expected earnings for the June quarter.
However, the company's outlook remains challenging. JD.com is grappling with sluggish consumer demand in China, its largest market, which has led to increased competition from other major e-commerce players like Alibaba Group Holdings Ltd. (NYSE) and PDD Holdings Inc. (NASDAQ).
The news of Walmart’s planned sale has further exacerbated concerns about JD.com's future performance, overshadowing the positive momentum gained last week.
Walmart is reportedly seeking to raise approximately $3.74 billion through the sale of 144.5 million JD.com shares, priced between $24.85 and $25.85 each. This move by Walmart comes at a time when JD.com was showing signs of recovery, with shares recently rallying on stronger-than-expected earnings for the June quarter.
However, the company's outlook remains challenging. JD.com is grappling with sluggish consumer demand in China, its largest market, which has led to increased competition from other major e-commerce players like Alibaba Group Holdings Ltd. (NYSE) and PDD Holdings Inc. (NASDAQ).
The news of Walmart’s planned sale has further exacerbated concerns about JD.com's future performance, overshadowing the positive momentum gained last week.