Why JD.com Stock Slumped on Thursday
Although JD.com 's (NASDAQ: JD) recently released first-quarter results pleased many investors and analysts, not everyone has been overly bullish on the company. Early Thursday morning, an analyst made a relatively assertive price target cut on the stock, and the market reacted by trading it down by almost 4% on the day.
A double-digit chop
Well before market open that session, Susquehanna International's Shyam Patil reduced his JD.com price target by more than 10%, cutting it to $40 per share from his previous $45. That didn't change his overall estimation of the stock, as he maintained his neutral recommendation.
According to reports, Patil expressed admiration for the company's first-quarter performance, writing that user experience improvements were catalyzing growth in the user count. He feels that the Chinese e-commerce giant is also well positioned in its market, and could benefit from ventures into new segments such as food delivery.
That said, however, the relatively shaky Chinese economy could limit JD.com's potential, in his view. Patil also believes that this state of affairs could persist; hence the price target reduction and neutral outlook.
Could this be a sleeper stock?
Getting slightly more bearish on JD.com is a somewhat counterintuitive move these days. That's because the company posted quite encouraging year-over-year growth, especially on the bottom line, in the aforementioned quarter. It also notched rather convincing beats on the consensus analyst estimates.
This indicates that the Chinese macroeconomy might be in better shape than many believe. I wouldn't count JD.com out quite yet, especially if it continues to improve its fundamentals so impressively.
Should you invest $1,000 in JD.com right now?
Before you buy stock in JD.com, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and JD.com wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!*
Now, it's worth noting Stock Advisor 's total average return is959% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 12, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
28 minutes ago
- Globe and Mail
Silver Prices Rocket to 13-Year Highs. More Upside Is Likely.
July Comex silver futures (SIN25) Thursday hit a 13-year high above $36.00 an ounce. This surge has been brewing all week. On Monday, we saw a strongly bullish upside technical price 'breakout' from a choppy and sideways trading range on the daily bar chart. Silver prices paused Tuesday and Wednesday, but on Thursday picked back up to hit a 13-year high. Still more upside is likely for the silver market in the near term after prices pushed well above strong technical resistance at the late-March high of $35.80 in July futures on Thursday. Don't be surprised to see silver prices challenge $40.00 an ounce in the near term. The record high in nearby Comex silver futures is $50.36, scored in January 1980. Since gold (GCM25) scored a new record high of $3,485.60 an ounce, basis nearby Comex futures, in April, I have maintained, and still do, that silver appears to be a value-buying opportunity, as it's still around $15.00 below its record high scored 45 years ago. Indeed, right now, it's 'Katie bar the door' to the upside for silver prices. It would take a close below chart support at $33.00 to rattle the silver bulls' cage and begin to suggest that a near-term market top is in place. The gold market has also turned more technically bullish recently, posting a strong rebound from the May low, restarting a price uptrend on the daily bar chart and on Thursday hitting a four-week high of $3,427.70, basis August futures. The gold market has stiff overhead technical resistance to overcome for prices to push to new record highs. Those chart resistance levels are the May high of $3,477.30 and the contract high of $3,539.30, basis August Comex futures. Fundamentally, safe-haven demand continues to flow into the gold and silver markets. The U.S.-China trade war shows no solid signs of ending anytime soon, despite news today that U.S. President Donald Trump and Chinese President Xi Jinping held a telephone call. Early reports say the talks did not yield much of substance. The Russia-Ukraine war has heated up with this week's Ukrainian drone attacks on Russia's infrastructure. The Middle East is always a wild card for the marketplace. What's Driving Silver Prices to 13-Year Highs? Part of the buying interest in gold, silver, and platinum (PLN25) comes amid the recent news on rare-earth metals regarding China's export restrictions, which are causing disruptions in global supply chains. In turn, these disruptions are reducing rare metal supplies coming to industries like automobile manufacturing. China knows that withholding its rare earth minerals from the West gives it an advantage on the world stage. The U.S. Dollar Index ($DXY) Thursday slumped to a six-week low following some downbeat U.S. economic data released this week. The down-trending USDX is a bullish 'outside-market' element for the gold and silver markets. U.S. Treasury yields have also backed down a bit recently, also a positive for the precious metals. The other key outside market for precious metals is crude oil (CLN25), which has rallied well off the April and May lows and on Thursday was poised to close at a two-month high, basis Nymex futures. Rising crude oil prices tend to be a tide that lifts most raw commodities. Meantime, platinum futures have just hit a three-plus-year high of $1,152.50 an ounce, basis nearby futures. The next upside target for the energized platinum bulls is the March 2022 high of $1,197.00. Above that lies technical resistance at the May 2021 high of $1,281.40 and then at the February 2021 high of $1,348.20. The record high in nearby platinum futures was scored in March 2008, at $2,308.80. Tell me what you think. I really enjoy getting email from my valued readers all over the world. Email me at jim@
Globe and Mail
28 minutes ago
- Globe and Mail
Stocks Muted Before the Open With U.S. Economic Data in Focus, ECB Decision Eyed
June S&P 500 E-Mini futures (ESM25) are up +0.02%, and June Nasdaq 100 E-Mini futures (NQM25) are up +0.10% this morning, pointing to a muted open on Wall Street, while investors await a fresh batch of U.S. economic data, remarks from Federal Reserve officials, and an earnings report from semiconductor and software giant Broadcom. Some positive corporate news is supporting stock index futures, with MongoDB (MDB) surging over +14% in pre-market trading after the database company posted upbeat Q1 results, raised its full-year guidance, and boosted its share buyback program. Also, Five Below (FIVE) climbed more than +5% in pre-market trading after the specialty discount retailer reported forecast-beating Q1 results and issued solid Q2 guidance. Lower bond yields today are also supporting stock index futures. However, gains in U.S. equity futures are limited amid investor caution ahead of Friday's payrolls data. Also, trade uncertainty persists as the Trump administration's deadline for countries to submit their 'best offers' for trade deals has passed without any notable developments. In yesterday's trading session, Wall Street's major indexes ended mixed. ON Semiconductor (ON) climbed over +6% and was the top percentage gainer on the S&P 500, extending Tuesday's gains after the semiconductor firm's CEO Hassan El-Khoury said he sees early signs of a broad-based recovery in demand. Also, homebuilder stocks advanced after the benchmark 10-year T-note yield slumped, with DR Horton (DHI) rising more than +4% and Lennar (LEN) gaining over +3%. In addition, Guidewire Software (GWRE) surged over +16% after the insurance-software provider posted upbeat FQ3 results and raised its full-year revenue guidance. On the bearish side, Dollar Tree (DLTR) slid more than -8% and was the top percentage loser on the S&P 500 after the discount retailer warned that new U.S. tariffs could slash its Q2 profit by 45% to 50%. The ADP National Employment report released on Wednesday showed that U.S. private nonfarm payrolls rose by 37K in May, weaker than expectations of 111K and the smallest increase in more than two years. Also, the U.S. ISM services index unexpectedly fell to 49.9 in May, weaker than expectations of 52.0. 'Markets are likely to view this through the lens of disappointment on the real growth side,' said Florian Ielpo at Lombard Odier Investment Managers. Meanwhile, the Federal Reserve said Wednesday in its Beige Book survey of regional business contacts that U.S. economic activity declined slightly in recent weeks, signaling that tariffs and heightened uncertainty are hurting the economy. 'All districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions,' according to the Beige Book. The report stated that consumer spending either declined slightly or showed no change across most districts, while prices rose at a 'moderate' pace. Most regions described employment as 'flat,' while wages continued to grow at a 'modest' pace. The report said the outlook remained 'slightly pessimistic and uncertain, on balance.' U.S. rate futures have priced in a 95.6% probability of no rate change and a 4.4% chance of a 25 basis point rate cut at June's monetary policy meeting. Today, investors will monitor earnings reports from several high-profile companies, with Broadcom (AVGO), Lululemon Athletica (LULU), and Samsara (IOT) slated to release their quarterly results. On the economic data front, investors will focus on U.S. Initial Jobless Claims data, which is set to be released in a couple of hours. Economists expect this figure to be 236K, compared to last week's number of 240K. U.S. Unit Labor Costs and Nonfarm Productivity data will also be closely watched today. Economists forecast Q1 Unit Labor Costs to be +5.7% q/q and Nonfarm Productivity to be -0.8% q/q, compared to the fourth-quarter numbers of +2.0% q/q and +1.7% q/q, respectively. U.S. Trade Balance data will be released today as well. Economists expect the trade deficit to narrow to -$67.60B in April from -$140.50B in March. In addition, market participants will parse comments today from Fed Governor Adriana Kugler, Kansas City Fed President Jeff Schmid, and Philadelphia Fed President Patrick Harker. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.318%, down -1.01%. The Euro Stoxx 50 Index is up +0.35% this morning, extending gains from the prior session following Germany's approval of a tax relief package, while investor attention turns to the European Central Bank's monetary policy decision. Construction and technology stocks outperformed on Thursday. At the same time, travel stocks lost ground. Data from the Federal Statistics Office released on Thursday showed that Germany's factory orders unexpectedly rose in April, defying concerns that U.S. President Trump's escalating tariffs would dent demand for German goods. Separately, data from Eurostat showed that the Eurozone's monthly industrial producer prices fell more than expected in April, marking the sharpest drop since April 2023. Meanwhile, investors are awaiting the ECB's interest rate decision later in the session, with the central bank widely expected to lower the deposit rate by another 25 basis points to 2.00% amid ongoing easing in Eurozone inflation. That would mark the eighth interest rate cut in an easing cycle that may be approaching its end. Investors will likely focus on signals about future moves and on projections that President Christine Lagarde will present. On the trade front, uncertainty persisted as the Trump administration's deadline for countries to submit their 'best offers' for trade deals passed without any notable developments. In corporate news, Wizz Air Holdings Plc ( plummeted over -26% after the budget carrier posted weaker-than-expected annual operating profit. Germany's Factory Orders and Eurozone's PPI data were released today. The German April Factory Orders arrived at +0.6% m/m, stronger than expectations of -1.5% m/m. Eurozone's April PPI has been reported at -2.2% m/m and +0.7% y/y, weaker than expectations of -1.8% m/m and +1.2% y/y. Asian stock markets today settled mixed. China's Shanghai Composite Index (SHCOMP) closed up +0.23%, and Japan's Nikkei 225 Stock Index (NIK) closed down -0.51%. China's Shanghai Composite Index ended slightly higher today after a private gauge of the nation's services sector helped ease concerns that the economic recovery has stalled. Technology stocks led the gains on Thursday. Rare earth stocks also climbed after a group representing U.S. auto suppliers urged immediate action to address China's restricted exports of rare earths, minerals, and magnets. A private sector survey released on Thursday showed that China's services activity expanded at a faster pace in May, with new orders rising more rapidly than in April, though new export orders fell amid uncertainty related to U.S. tariffs. Still, the benchmark index's gains were limited amid elevated uncertainty surrounding U.S.-China trade relations. U.S. President Donald Trump said on Wednesday that Chinese President Xi Jinping was tough and 'extremely hard to make a deal with,' casting doubt on the prospects for a lasting trade agreement. The focus is now on whether authorities can boost consumption quickly enough to offset the slowdown in external demand. Garrett Melson, a portfolio strategist at Natixis Investment Managers, said, '[While] policy easing continues and trade risks cloud the outlook, the central government has considerable headroom for monetary and fiscal policy easing to support growth.' In other news, Bloomberg reported that Chinese officials summoned senior executives of electric vehicle manufacturers, including BYD, Geely, and Xiaomi, earlier this week to address concerns over the ongoing price war. In corporate news, Beijing Wantai Biological Pharmacy Enterprise jumped +10% after the vaccine maker announced it received approval for its marketing authorization application for its Nine-valent HPV vaccine. The Chinese May Caixin Services PMI came in at 51.1, stronger than expectations of 51.0. Japan's Nikkei 225 Stock Index closed lower today after demand at a 30-year government bond auction was weaker than average. A stronger yen also weighed on investors' risk appetite. Automobile and shipping stocks led the declines on Thursday. Limiting losses, chip stocks advanced, tracking overnight gains in their U.S. peers. Japan's 30-year government bond auction drew the weakest demand since 2023, increasing pressure on the government to adjust the issuance of bonds with super-long maturities. Meanwhile, Reuters reported on Thursday that the Bank of Japan is weighing slowing the pace of tapering in its bond purchases starting next fiscal year, in a move that would underscore its aim to prevent major disruptions in the bond market. On the economic front, government data released on Thursday showed that Japanese real wages declined for a fourth straight month in April, weighed down by persistent inflation that has continued to outpace pay increases delivered by companies so far. Inflation-adjusted real wages, a key gauge of households' purchasing power, declined 1.8% in April from a year earlier, following a revised 1.8% slump in March. Moody's Analytics economist Stefan Angrick said that Japan's regular pay growth is expected to slow in the coming months as higher tariffs impact production and shipments, potentially adding further pressure on real wages. In other news, the Nikkei business daily reported that Japan is preparing to propose enhancing cooperation with the U.S. on rare earth supply chains during the upcoming tariff negotiations. In corporate news, Suzuki Motor dropped over -3% after the Nikkei reported that the automaker suspended production of its Swift model due to China's rare earth export restrictions. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +0.51% to 23.52. Pre-Market U.S. Stock Movers MongoDB (MDB) surged over +14% in pre-market trading after the database company posted upbeat Q1 results, raised its full-year guidance, and boosted its share buyback program. Five Below (FIVE) climbed more than +5% in pre-market trading after the specialty discount retailer reported forecast-beating Q1 results and issued solid Q2 guidance. Broadcom (AVGO) rose over +1% in pre-market trading after Erste Group upgraded the stock to Buy from Hold. PVH Corp. (PVH) slumped more than -8% in pre-market trading after the owner of the Calvin Klein and Tommy Hilfiger brands cut its full-year profit guidance. It said its outlook reflects 'an estimated net negative impact related to the tariffs currently in place for goods coming into the U.S.' Chewy (CHWY) fell over -2% in pre-market trading after Jefferies downgraded the stock to Hold from Buy with a price target of $43. Today's U.S. Earnings Spotlight: Thursday - June 5th Broadcom (AVGO), Lululemon Athletica (LULU), Samsara (IOT), Rubrik (RBRK), DocuSign (DOCU), Brown Forman (BFb), Ciena Corp (CIEN), Toro (TTC), Vail Resorts (MTN), Braze (BRZE), IDT (IDT), Cracker Barrel Old (CBRL), Hello Group (MOMO), Petco Health and Wellness (WOOF), Quanex Building Products (NX), Mission Produce (AVO), Guess (GES), Torrid Holdings (CURV), Concrete Pumping A (BBCP), Lands' End (LE), Zumiez (ZUMZ), Duluth Holdings (DLTH), AstroNova (ALOT).
Globe and Mail
an hour ago
- Globe and Mail
Should You Invest $1,000 in TGT today?
Target (NYSE: TGT) is a passive income powerhouse with more than five decades of annual dividend raises and an enticing 4.8% yield. But even with the high payout, Target has lost investors money over the last five years while the S&P 500 (SNPINDEX: ^GSPC) has more than doubled with dividends included. Here's why Target is under pressure, and whether the dividend stock is a buy right now. Retail winners and losers Retailers like Target have been under pressure as consumers tighten spending amid inflation and economic uncertainty. Data from the University of Michigan shows that consumer sentiment is hovering around its lowest level since 2022. Some companies have capitalized on consumer needs by providing products and services consumers want at affordable prices. For example, Walmart and Costco Wholesale have steadily grown revenue while sustaining good margins despite macro challenges. Target has had some success with promotions and partnerships, but is still seeing an overall decline in foot traffic. The divergence between Target's stock price and Walmart's and Costco's over the last two to three years illustrates the degree to which investor confidence has weakened for Target relative to these other names. TGT data by YCharts Target slashed its guidance in its most recent earnings announcement. The company is now on track for a third consecutive fiscal year of adjusted earnings-per-share (EPS) declines. With Target's sales and earnings falling, investors have understandably grown skeptical of the company's ability to execute. Target has built up a bad track record of overpromising and underdelivering, so it's hard to put too much faith in its guidance. To Target's credit, management acknowledged the poor results and is focusing on turning the business around rather than appeasing investors. The company plans to leverage efficiency improvements and a revamped product lineup to get customers in stores and return to meaningful sales growth. Target has the tools to pull it off, but the retailer has to manage costs better, align inventory with buyer behavior trends, and limit steep discounts that have crushed its margins in recent years. Target's dividend is as healthy as ever Target's flaws are glaring and ongoing, but it would be a mistake to overlook the qualities that could make the stock a good buy in June. Target's sales and earnings may be ticking down, but it is still a highly profitable business that generates cash flow. In fact, Target's EPS and free cash flow (FCF) per share remain significantly higher than its dividend per share, even though Target has raised its dividend for 53 consecutive years. TGT Free Cash Flow Per Share data by YCharts Typically, when a company's stock price tanks and its dividend yield goes up, it's because earnings are declining and the dividend begins to look unaffordable. However, Target is in a unique situation where its dividend is highly affordable despite the stock price being around six-year lows and the yield ballooning. Another good way of measuring dividend affordability is comparing the FCF yield to the dividend yield. FCF yield takes FCF per share and divides it by the stock price, similar to how dividend yield is dividend per share divided by the stock price. FCF yield basically shows the theoretical dividend a company could pay if it used all of its FCF on dividends. Target's FCF yield is a sky-high 8.2% -- much more than its 4.8% dividend yield. So while the company isn't growing, it is still a very profitable business that is well positioned to grow its dividend. A balanced buy for dividend income Investing $1,000 in Target demonstrates a belief in management's ability to turn the company around and leverage Target's strengths rather than expose its weaknesses. The company's main weakness is that it can't compete with Walmart, Costco, or Amazon in terms of price, but it can find a happy medium centered around an enjoyable customer experience at a good value. The Target Circle loyalty program and Target's exclusive and limited-time partnerships will be instrumental in pulling off the turnaround. In the meantime, investors can rest easy knowing that the dividend is affordable, even with the high yield. A $1,000 investment in Target would produce about $48 in dividend income per year, which is significantly more than the $13 or so you could expect from an S&P 500 index fund. Add it all up, and Target stands out as a solid buy for value and income investors today. Should you invest $1,000 in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor 's total average return is789% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.
