Shares of JD.com (NASDAQ:JD; HKG:9618) ended the trading week near their lowest levels in a year, as a downgrade from Daiwa and lackluster results from China's 618 shopping festival weighed on investor sentiment. The company's U.S. American Depositary Shares (ADS) closed at $25.39 on Friday, just above the 52-week low of $24.51 hit during the session.
Daiwa analyst John Choi lowered his rating on JD.com to Hold from Buy and slashed the price target to $27 from $47, representing a dramatic 42.6% reduction. The revised target sits only 6.3% above the current U.S. closing price, leaving little upside for investors. The decision came after data from China's mid-year 618 shopping festival showed minimal growth, with total gross merchandise value across major platforms reaching 863.6 billion yuan, virtually flat compared to 855.6 billion yuan a year earlier, according to estimates from Syntun reported by Reuters.
JD.com's ADS lost 7.91% over the past five trading sessions, underperforming the broader market. The Nasdaq Composite slipped 0.24% on Friday. Trading volume for JD's U.S. shares reached 13.02 million, well above the 10.05 million average tracked by Google Finance, indicating heightened investor interest amid the decline.
In Hong Kong, JD.com shares fell 2.78% to close at HK$96.00, after touching a session low of HK$95.80, which matches the stock's 52-week low. The Hong Kong-listed shares ended just 0.2% above that critical support level.
The downgrade from Daiwa reflects broader concerns about JD.com's growth trajectory. The broker cited macroeconomic headwinds, regulatory pressures, and a smaller trade-in program as key factors behind the weaker-than-expected 618 performance. JD.com reported record customer numbers during the festival but did not disclose total sales revenue, a departure from previous years when it highlighted transaction volumes.
JD.com has been attempting to shift its narrative away from heavy reliance on appliance sales. In March, CEO Sandy Xu told analysts that the company's growth drivers are becoming more diversified. Xu also indicated that investment in food delivery would decline in 2026 compared to 2025. However, the company has faced challenges, including missing quarterly revenue estimates and reporting a 2.7 billion yuan net loss attributable to ordinary shareholders, as per Reuters.
The average 12-month analyst target for JD.com currently stands at $38.17, according to Google Finance, but the lowest target has dropped near the current share price. For the stock to stage a meaningful recovery, the company will need to demonstrate stronger sales growth, margin improvement, or a shift in Chinese consumer confidence. If those catalysts fail to materialize, traders will be watching the $24.51 support level in the U.S. and the HK$95.80 mark in Hong Kong.
Looking ahead, JD.com will hold its annual general meeting on June 29 at 3:00 p.m. Hong Kong time in Beijing. The company stated that no proposals are up for a shareholder vote; instead, the meeting will serve as an open forum for shareholders of record to discuss business with management.
