JD.com shares are trading lower after it was announced the company will be removed from the Nasdaq-100 Index.
Portfolio Pulse from Benzinga Newsdesk
JD.com's stock is trading lower following the announcement that the company will be removed from the Nasdaq-100 Index, which may affect investor perception and the stock's visibility among index-tracking funds.
December 11, 2023 | 1:57 pm
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NEGATIVE IMPACT
JD.com's removal from the Nasdaq-100 Index could lead to a decrease in stock price due to potential selling pressure from index funds that need to rebalance their portfolios.
Being removed from a major index like the Nasdaq-100 often results in a short-term negative impact on a stock's price. Index funds that track the Nasdaq-100 will have to sell shares of JD.com to realign with the index, leading to increased selling pressure. Additionally, the removal may reduce the stock's visibility and attractiveness to investors who follow the index.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100