These 5 Reddit Stocks Are Getting Crushed in March

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

1-Month Decline in Share Price as of March 29: 11.63%

Number of Hedge Fund Holders: 67

JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce retailer that offers a wide range of products including consumer electronics, home appliances, beverage and fresh produce, furniture and household goods, personal care items, and fashion accessories. The stock has been a top pick of Redditors but they have posted losses as the shares declined 11.63% over the last month. 

On March 14, JPMorgan analyst Andre Chang double downgraded JD.com, Inc. (NASDAQ:JD) to Underweight from Overweight with a price target of $35, down from $100, citing his view that the sector-wide selloff might continue without valuation support in the near-term and global investors are decidedly backing away from their Chinese investments.

Among the hedge funds tracked by Insider Monkey, 67 funds were long JD.com, Inc. (NASDAQ:JD) at the end of the fourth quarter of 2021, compared to 66 funds in the third quarter. Tiger Global Management owns the biggest position in the company, with 53.7 million shares worth $3.76 billion. 

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.”