This Michael Burry Stock Erased 10% of Its Value in a Day: Understanding JD.com’s Recent Plunge
This Michael Burry Stock’s Dramatic Decline
On August 21, JD.com (NASDAQ: JD), a major holding in Michael Burry's portfolio, experienced a significant drop of 10% in its stock value, exacerbated by Walmart's announcement of an extensive share sale.
The Impact of Walmart’s Sell-Off
- JD shares fell 4.57% to $28.19 as trading closed.
- Pre-market trading revealed a further decline of 7.09%.
- Walmart offloaded 144.5 million shares, amounting to a 5.19% stake.
Market Reactions and Consequences
The sell-off price range of $24.85 to $25.85 triggered fears among investors, leading to JD.com’s brutal price movements. This price was roughly 11% beneath the closing value from August 20.
Challenges for JD.com in a Competitive Landscape
Despite posting stronger-than-expected Q2 earnings, JD continues to battle a fierce price war in China. With a staggering 77% slide from its February 2021 peak of $106.09, JD.com has only managed a modest increase of 3.64% in 2024 so far.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.