5 Reddit WallStreetBets Stocks That Are Rising

4. JD.com, Inc. (NASDAQ:JD)

Gain in Share Price in the Last 5 Days as of March 23: 3.78%

Number of Hedge Fund Holders: 67

JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce company that specializes in online retail and logistics solutions.

On March 10, JD.com, Inc. (NASDAQ:JD) posted its fourth quarter results. The company reported earnings per share of $0.35, above market estimates by $0.08. Revenue over the period jumped 26.33% year-over-year to $42.64 billion, outperforming consensus by approximately $301 million. 

JPMorgan analyst Andre Chang double downgraded JD.com, Inc. (NASDAQ:JD) on March 14 to Underweight from Overweight with a price target of $35, down from $100. The analyst expects the sector-wide selloff to continue without valuation support in the short-term as risk management becomes the most important consideration among global investors in relation to their Chinese investments.

According to Insider Monkey’s Q4 database, Tiger Global Management held the biggest stake in JD.com, Inc. (NASDAQ:JD), with 53.7 million shares worth $3.7 billion. Overall, 67 hedge funds were bullish on the stock at the end of December 2021.

Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”