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      blog search icon, Inc. (JD) stock sinks in the premarket: Why is it so? - Stocks Telegraph

      By Muhammad Ali

      Published on

      December 23, 2021

      1:24 PM UTC, Inc. (JD) stock sinks in the premarket: Why is it so? - Stocks Telegraph

      Shares of the, Inc. (JD) stock were declining in the premarket today on December 23, 2021. JD stock price saw a downtrend of 6.85% to drop at $68.70 a share at the time of this writing. The stock was green in the previous trade and went up by 0.46% at closing. Let’s understand the reason behind this fall.

      What’s Happening?

      JD stock become bearish in the premarket after Tencent Holdings Limited made an announcement of distributing 460 million Class A ordinary shares of the JD stock to the existing shareholders of the company. Tencent will distribute the share in the form of a special dividend. Tencent decided to take this step amid China’s broad crackdown on the powerful tech sector of the country.

      This move will cut Tencent 17% hold of to 2.3% and the shareholders of the company who receive the shares will become the shareholders of the JD stock. However, and Tencent Holdings Limited will continue to work together. Their ongoing strategic partnership agreement will feel no effect of this move of Tencent Holdings.

      Change in Board

      JD recently announced the resignation of Martin Chiping Lau from the company’s board of directors effective Dec. 22, 2021. Mr. Martin had been serving the company as a board member and member of the compensation committee since March 2014. The CEO and Chairman of acknowledged the contributions of Mr. Martin and said that the company will greatly miss his services.

      Previous news of JD stock

      Recently on December 20, 2021, did announce that it wishes to double the Sunkist’s citrus fruits import in the next three years. The company decided to do this after observing the highest demand for Sunkist’s citrus fruits. Since 2018, the company observed a 60% compound annual growth rate in Sunkist’s fresh citrus sales. The target is to import over 10,000 tons of premium citrus in the next three years.

      Financial View of JD stock

      According to third-quarter 2021 financial results, JD generated RMB218.7 billion in net revenue, representing a 25.5% increase from the same period of the previous year. Net services revenue for the company was RMB32.7 billion, 43.3% higher than the same prior-year period. The company reported RMB2.6 billion in income from operations in the third quarter of 2021. Non-GAAP income from operations was RMB4.6 billion in the recently reported quarter.Net loss attributable to ordinary shareholders of the JD stock was RMB2.8 billion in the third quarter of 2021. Operating cash flow increased from RMB37.3 billion to RMB41.0 billion in the recently reported quarter.

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