Analysts Are Cutting Price Targets Of These 5 Stocks

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

Number of Hedge Fund Holders: 67

JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce retailer that provides online marketplace services for third-party merchants and omni-channel solutions to customers and offline retailers. 

In the fourth quarter of 2021, 67 funds reported owning stakes in JD.com, Inc. (NASDAQ:JD), up from 66 funds in the earlier quarter. The total stakes held in JD.com, Inc. (NASDAQ:JD) during Q4 2021 were $8.75 billion. Tiger Global Management owned the biggest position in the company, with 53.7 million shares worth $3.76 billion. 

On March 10, JD.com, Inc. (NASDAQ:JD)’s Q4 results went live, and the company announced a GAAP loss per share of $0.53, missing consensus estimates by $0.63. Revenue over the period jumped 26.33% year on year to $43.64 billion, surpassing analysts’ predictions by $300.75 million. 

JPMorgan analyst Andre Chang on March 14 double downgraded JD.com, Inc. (NASDAQ:JD) to Underweight from Overweight with a price target of $35, down from $100, observing that the sector-wide selloff of Chinese securities might continue without valuation support in the near-term. The analyst named Chinese internet stocks including JD.com, Inc. (NASDAQ:JD) “uninvestable” over the next six months to one year, citing increasing risk for downward revisions owing to the tougher macro environment. 

Here is what Argosy Investors has 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.”