JD.com, Inc. (symbol ‘JD’) share price has lost most of its profits gained in the last quarter of the year while the price is trading well below all technical indicators. The company’s earnings report for the fiscal quarter ending December 2022 is set to be released on Thursday 9th of March, before market open. The consensus EPS for Q4 is $0,37 compared to Q4 2022’s $0,09.
‘As China has eased its COVID-related restrictions and reopened its economy, companies throughout the country are getting ready for intense price wars to gain back market share. The company intends to spend around $1.5 Billion to subsidize its campaign to improve prices and boost the image of a low cost e-commerce platform. This might increase their sales but will cut down their profit margins which is not very pleasant news for investors.’ said Antreas Themistokleous at Exness. ‘The current ratio of the company is at 135% showing their ability to repay the short term liabilities with the current assets while the subtle hints of the approaching price wars had shareholders running for the exit already.’
From the technical analysis perspective the price has been making consecutive losses in the last month and is currently trading just above the 78.6% of the daily Fibonacci retracement level.
The aggressive sell off of the share has yet to cause a cross of the 50 day moving average below the 100 day moving average which shows that the bulls got caught off guard to react to this move. The Stochastic oscillator is recording oversold levels and in combination with the technical support around the $42.25 the price might face strong support around that area causing a short term correction to the upside.
‘As China has eased its COVID-related restrictions and reopened its economy, companies throughout the country are getting ready for intense price wars to gain back market share. The company intends to spend around $1.5 Billion to subsidize its campaign to improve prices and boost the image of a low cost e-commerce platform. This might increase their sales but will cut down their profit margins which is not very pleasant news for investors.’ said Antreas Themistokleous at Exness. ‘The current ratio of the company is at 135% showing their ability to repay the short term liabilities with the current assets while the subtle hints of the approaching price wars had shareholders running for the exit already.’
From the technical analysis perspective the price has been making consecutive losses in the last month and is currently trading just above the 78.6% of the daily Fibonacci retracement level.
The aggressive sell off of the share has yet to cause a cross of the 50 day moving average below the 100 day moving average which shows that the bulls got caught off guard to react to this move. The Stochastic oscillator is recording oversold levels and in combination with the technical support around the $42.25 the price might face strong support around that area causing a short term correction to the upside.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.