JD.com (JD 6.12%) stock is losing ground in Monday's daily trading session. The Chinese e-commerce company's share price was down 2.7% as of 3:30 p.m. ET, according to data from S&P Global Market Intelligence. Meanwhile, the Hang Seng Index was down roughly 1%.
While there doesn't appear to be any business-specific news pushing JD's share price lower today, the company's valuation is being impacted by the macroeconomic outlook in China. New data for November suggests that the country's economic recovery has continued to proceed at an underwhelming pace, and some news in the automotive sector is also dampening investor enthusiasm.
Why is automotive news moving JD.com stock?
JD.com has little in the way of direct exposure to the auto market, but big news in the space can still have an impact on broader market sentiment that translates into significant moves for the e-commerce specialist's share price. Today, Alibaba revealed that it was looking to sell 25 million American depositary shares that it currently holds in XPeng -- an electric vehicle company. Investors may be looking at the proposed stock sale as a sign that China's auto market and broader economy will continue to struggle.
What comes next for JD.com stock?
Alibaba's announcement that it plans to sell a significant amount of XPeng stock comes on the heels of new Chinese economic data that was published after last week's market close. While the country's industrial economy showed signs of solid growth, consumer spending came in below expectations. Given that JD.com generates most of its business from the consumer e-commerce market, the new economic tracking suggests that the online retail specialist's performance could remain pressured in the near term.
JD PE Ratio (Forward) data by YCharts
JD.com stock has fallen roughly 52.5% year to date amid the unfavorable macroecomic and geopolitical backdrop for Chinese stocks. With shares trading at under 8.9 times this year's expected earnings and less than 28% of expected sales, the company looks cheaply valued along different multiples -- but investors should approach the stock with the understanding that macroeconomic factors will continue to play an outsized role in shaping near-term pricing moves.
