Please ensure Javascript is enabled for purposes of website accessibility

Why, Inc. Stock Dropped 14% Last Month

By Jeremy Bowman – Apr 9, 2018 at 3:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of the Chinese e-commerce company sold off after a weaker-than-expected earnings report.

What happened

Shares of, Inc. (JD -1.85%) headed south last month after the Chinese e-commerce company missed the mark on some key metrics in its fourth-quarter earnings report. As a result, the stock finished March down 14%, according to data from S&P Global Market Intelligence. As you can see in the chart below, shares fell sharply at the beginning of the month after the earnings release, and remained volatile for the rest of March:

JD Chart

JD data by YCharts.

So what, the #2 Chinese e-commerce operator behind Alibaba, showed off another round of strong growth. Revenue was up 38.7% to $16.9 billion, but that came up a bit short of analyst estimates of $17.1 billion. Adjusted earnings per share, meanwhile, slipped from $0.09 to $0.05, missing expectations of $0.07.

CEO Richard Liu said: "Our unmatched online shopping experience continued to reshape Chinese e-commerce, win over consumers and drive robust growth in 2017. As we implement our vision of 'boundaryless retail,' we are working with top industry players to build China's most advanced and comprehensive retail ecosystem to reach consumers wherever and whenever they shop."

An ad for in New York's Times Square

Image source:

However, with the earnings and revenue misses, the stock still sold off 5.2% on the report. The stock recovered most of those losses by the end of the next week, but fell later in the month on news that Alibaba was preparing to launch its own listing in mainland China, which could give additional firepower to's chief rival.

Now what

With investments from Tencent and Walmart and impressive growth, is no slouch despite Alibaba's much larger size. China's e-commerce market is big enough to support more than one winner, and shares are still up 27% over the last year, indicating a broader upward trend. has also been gaining share on Alibaba, and is planning to expand into Europe and the U.S. While last month's sell-off was disappointing, investors shouldn't lose track of the bigger picture.

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends and Tencent Holdings. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$50.30 (-1.85%) $0.95

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.