5 Stocks to Sell Now According to Ray Dalio

3. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 62

JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce company and a member of the Fortune Global 500. The company possesses some of the best drone delivery systems, infrastructure, and capabilities.

According to its second quarter reports, JD.com, Inc. (NASDAQ:JD) reported an EPS of $0.61 against the $0.40 consensus. The revenue of $40 billion represented a 5.4% YoY growth and outperformed the estimates of $38.47 billion. Furthermore, the company reported that its annual active customers increased to 580.8 million, an increase of 9% in 12 months. The company is also focusing on its shareholder returns through its $1.26 annual dividend and the $3 billion share repurchase program which will last till May 2024.

In Q1 2022, Bridgewater Associates had a $123.91 million stake in JD.com, Inc. (NASDAQ:JD), representing 0.49% of the fund’s portfolio. The stock was dumped by the firm during the quarter ending June 30.

On July 25, Morgan Stanley analyst Eddy Wang named JD.com, Inc. (NASDAQ:JD) a “Catalyst Driven Idea” ahead of its Q2 earnings and believes that the company’s Q3 revenue growth will accelerate from June levels. Wang has an Overweight rating on JD.com, Inc. (NASDAQ:JD) with an $80 price target.

Here is what Argosy Investors had to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”