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JD.com Increases Share Buyback Plan to $3B

JD.com, Inc. (NASDAQ: JD), a Chinese e-commerce company, disclosed that its board of directors has increased the existing stock repurchase program from $2 billion to $3 billion.  

Notably, the prior authorization, announced in March 2020, has been extended until March 17, 2024. 

Other Developments 

Recently, Chinese social and video gaming company Tencent Holdings Ltd. (TCEHY), which owns 17% of JD.com’s outstanding shares, announced its plans to substantially reduce its stake in the company to 2.3%. Meanwhile, the mutually beneficial business relationship, including the ongoing strategic partnership agreement between JD.com and Tencent, will continue as planned.    

Wall Street’s Take 

Following the stake reduction revelation by Tencent, Stifel Nicolaus analyst Scott Devitt reiterated a Buy and a price target of $110 (67% upside potential) on JD.com. 

Devitt believes that the change in ownership will not have any fundamental business impact and JD’s business is “performing very well.” 
 
Consensus among analysts is a Strong Buy based on 13 Buys versus 1 Hold. The average JD.com price target of $108.29 implies 64.4% upside potential from current levels. However, shares have fallen 26.4% over the past year. 

Website Traffic 

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into JD.com’s performance this quarter. 

According to the tool, the JD.com website recorded a 31.77% decrease in global visits in November compared to the same period last year. Also, a quarter-to-date comparison showed a decrease of 44.82% compared to Q4 2021, and the year-to-date website traffic decline stands at 32.51%.

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