Why Did JD Stock Plunge 10.46%?

On April 7, 2025, JD's stock price dropped by 10.46% in pre-market trading, signaling a significant decline in investor sentiment towards the company.

Schroder Investment Management Group reduced its stake in JD.com, Inc. by 1.4% in the fourth quarter, which may have contributed to the recent decline in the stock price. This reduction in holdings by a major investor can often lead to a decrease in market confidence and subsequent sell-offs.

Several brokerages, including JPMorgan Chase & Co., have adjusted their price targets for JD.com. JPMorgan increased its price target from $50.00 to $55.00 and maintained an "overweight" rating, indicating a positive long-term outlook despite the recent drop. Such adjustments can influence investor decisions and market sentiment.

JD.com has shown strong performance over the past year, achieving a total return of 52.76%, significantly outperforming the industry average of 5.9%. This performance is driven by strategic expansions and a robust business model, which could provide a foundation for future growth and recovery from the recent decline.