China’s JD.com feels pressure as sales of big-ticket items slow
E-commerce firm has already lost nearly half of its market value this year as it fights intense competition
Chinese e-commerce firm JD.com’s shares came under further pressure on Monday after the company reported its slowest quarterly revenue growth since its initial public offering in 2014. JD.com, backed by Walmart, Alphabet’s Google and China's Tencent, has already lost nearly half of its market value this year as it fights intense competition for Chinese online consumers. On Monday it said slower sales in its core e-commerce business, particularly big-ticket items, dented third-quarter earnings growth. Though revenue rose 25% from the same period a year earlier, it lagged analysts' forecasts and was well below previous growth rates, which peaked at over 60% in 2015. The company forecast fourth-quarter sales growth of 18%-23%, slightly below an average analyst estimate of 23.5%.
JD.com’s shares were down over 5% in pre-market trade on Nasdaq. Concerns over the Sino-US trade war and a legal allegation facing CEO Richard Liu have pushed down JD.com shares by more than 44% this year...
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