Why JD.com Stock Is Sliding Monday
Portfolio Pulse from Adam Eckert
JD.com Inc (NASDAQ:JD) stock is declining after the announcement that it will be removed from the Nasdaq-100 Index. The annual reconstitution of the Nasdaq-100 Index, effective December 18, 2023, excludes JD.com along with several other companies. Despite the index removal, analysts have predominantly positive ratings on JD.com, with an average 12-month price target of $58.24. At the time of the report, JD.com's shares had fallen by 3.97% to $25.40.
December 11, 2023 | 2:28 pm
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JD.com's stock is experiencing a downturn due to its removal from the Nasdaq-100 Index, which may influence investor perception and fund allocations.
Being removed from a major index like the Nasdaq-100 can lead to selling pressure as index-tracking funds and ETFs divest their holdings. This often results in a short-term negative impact on the stock price. However, the overall analyst sentiment remains positive, which may buffer the impact slightly.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100