Investor Alert

New York Markets After Hours

June 27, 2022, 10:47 a.m. EDT

JD.com shares gain as Prosus stock sale removes 'big overhang'

U.S.-listed shares of JD.com Inc. (NAS:JD) were rallying about 4% in Monday morning trading after Dutch internet holding company Prosus NV (AMS:NL:PRX) disclosed that it sold its stake in the Chinese e-commerce company for $3.7 billion. "This was a big overhang that investors were avoiding JD on long side, but now that it has been removed, creates an even better LONG set-up into China economic forum in July where we expect Xi to outline greater stimulus to spark economic growth," wrote Mizuho desk-based analyst Jordan Klein, who is associated with the sales team and not the research unit. JD.com's U.S.-listed shares have gained 11.0% over the past three months as the KraneShares CSI China Internet ETF (PSE:KWEB) has risen 14.6% and as the S&P 500 (S&P:SPX) has declined 14.1%.

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