JD.com Backs Out of Currys Acquisition, Eyeing Other Expansion Paths, Stock Slips
Portfolio Pulse from Anusuya Lahiri
JD.com Inc (NASDAQ:JD) has decided not to proceed with the acquisition of British electrical retailer Currys, leading to a decline in its stock price. This decision follows a similar move by US investor Elliott Advisors and comes amid JD.com's exploration of expansion opportunities in the UK and Europe. Despite recent revenue growth, JD.com's stock slipped by 3.43% to $27.05. Investors can gain exposure to JD.com through VanEck Retail ETF (NASDAQ:RTH) and ProShares Online Retail ETF (NYSE:ONLN).
March 15, 2024 | 5:53 pm
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NEGATIVE IMPACT
JD.com decided against acquiring Currys, leading to a 3.43% drop in its stock price to $27.05.
JD.com's decision to not proceed with the Currys acquisition likely disappointed investors looking forward to its expansion in Europe, leading to a negative short-term impact on its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
ProShares Online Retail ETF, which includes JD.com, might be indirectly influenced by JD.com's stock performance.
Given that ONLN holds JD.com among its assets, any significant news about JD.com could have a ripple effect on ONLN's price. However, the effect is likely to be moderated by the ETF's diversified portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to JD.com through VanEck Retail ETF, which may see indirect effects from JD.com's stock movements.
As an ETF that includes JD.com in its holdings, RTH may experience indirect price movements due to major news about JD.com, though the diversified nature of ETFs typically buffers against significant impacts from a single stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50