One of legendary investor Michael Burry’s top five holdings, JD.com (NASDAQ: JD), announced on August 27 a $5 billion share repurchase program.
The share buyback program, which will last from September 2024 through August 2027 and include American depositary shares (ADS), aims to rekindle investors’ confidence in the face of growing competition in the Chinese e-commerce sector.
This program will be another positive development after JD.com posted a beat of its profit forecasts for Q2 on August 15 and will serve as a positive counterweight to the news of Walmart’s (NYSE: WMT) sale of $3.74 billion JD shares on August 21.
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How did JD stock react to the news?
As the pre-market gains of 3.53% show, JD shares reacted positively to the news of the $5 billion share repurchase program, with gains helping recover the majority of losses from the latest trading session.
JD stock closed the August 26 trading session at a $25.80 valuation after losing 3.84% during trading, a loss that follows a decline of 9.79% in the past five trading days.
Michael Burry might not be happy to hear the JD stock news
According to his latest 13F filing on August 14, ‘The Big Short’ investor significantly reduced his stake in JD stock, selling 30.56% of its position during the second quarter, which left it at 12.31% weight in his portfolio, worth $6.4 million.
However, Scion Asset Management’s CEO might find some solace in the fact that since he reopened his position in Q3 2023, its price rose 4.32% until May 2024, when Burry potentially decided to offload a significant portion of his shares.
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