JD Stock Hits More Annual Lows After Mixed Earnings Report

The optimism surrounding JD could soon unwind

Deputy Editor
Mar 10, 2022 at 10:00 AM
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The shares of JD.Com Inc (NASDAQ:JD) are sinking this morning, last seen down 15.3% at $52.86 after the Chinese e-tail giant posted fourth-quarter earnings and revenue that topped analysts' estimates. Weighing on JD is the latter of the two, after revenue slowed to its weakest growth in six quarters. The company also swung to a net loss of roughly $810.4 million for the quarter. 

The stock is carving out even more lows this morning, breaching its former 22-month low of $56.41, to open at a fresh annual bottom of $51.00. The stock has shed more than 11% this year, and 40% in the past 12 months. 

Analysts have yet to chime in, but sentiment has been extremely high, which could lead to some bear notes down the road. Of the 10 in coverage, nine say "buy" or better, with just one "hold" on the books. 

Options traders have taken a similar stance. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JD sports a 50-day call/put volume ratio of 3.76, which stands higher than all but 2% of readings from the past year. This implies that long calls have rarely been more popular. 

On the other hand, short interest activity picked up ahead of the earnings event. Short interest rose 23.2% in the last reporting period, though it still makes up just 2.7% of the stock's available float, or a little over three days' worth of pent-up buying power. 

 

 




 
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