JD.com Announces $5 Billion Share Repurchase Program - Michael Burry's Major Stock Holding

Tuesday, 27 August 2024, 12:40

JD.com, a key stock of Michael Burry, just revealed a significant $5 billion share repurchase program aimed at reinvigorating investor confidence. This strategic move follows strong earnings and tackles growing competitive pressures in the Chinese e-commerce market. Burry's recent portfolio adjustments add an intriguing layer to this development.
Finance in Bold
JD.com Announces $5 Billion Share Repurchase Program - Michael Burry's Major Stock Holding

JD.com's $5 Billion Share Repurchase Program

JD.com (NASDAQ: JD), a prominent stock in Michael Burry's portfolio, announced a $5 billion share repurchase program on August 27, 2023. This initiative aims to restore investor confidence amidst increasing competition in the Chinese e-commerce sector.

Impact of Buyback Announcement

The buyback, spanning from September 2024 to August 2027, includes American Depositary Shares (ADS). This announcement follows JD's positive Q2 earnings report released on August 15, where it exceeded profit forecasts. This program serves as a positive counterweight to Walmart's recent sale of $3.74 billion in JD shares, contributing to a volatile market environment.

Market Reaction to the News

  • JD stock responded favorably, showing a pre-market gain of 3.53%, suggesting investor optimism.
  • Despite a previous closing valuation of $25.80 after a 3.84% trading loss, the buyback news has played a role in recapturing investor interest.
  • Over five trading days, JD stock had previously experienced a 9.79% decline.

Michael Burry’s Position on JD Stock

Despite JD.com's bright outlook, Michael Burry from Scion Asset Management made headlines by reducing his stake in JD stock by 30.56% in Q2 2023, now holding a 12.31% position worth approximately $6.4 million. Interestingly, since reopening his position in Q3 2023, JD stock has appreciated by 4.32% until May 2024, raising questions about his future investment decisions.


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.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe