JD.com's stock jumps 5% after e-commerce company unveils $5 billion share buyback program
By Ciara Linnane
China's largest online retailer by revenue said the program will run through August of 2027
JD.com Inc.'s U.S.-listed stock rose 5% early Tuesday, after the Chinese e-commerce company announced a new share buyback program of up to $5 billion.
The program will last through end August 2027.
The stock (JD) has fallen 10.7% in the year to date, while the S&P 500 has gained 17.8%, turning lower after Walmart Inc. (WMT) said last week it has sold its entire stake in JD.com for $3.6 billion. The news sent the stock down 8% the day it was announced.
The stock had gained days before when Beijing-based JD.com posted a sharp increase in quarterly profit on the back of a push to boost its efficiency using artificial intelligence.
The e-commerce giant said its increased margins were the result of the company successfully leveraging "economies of scale and procurement efficiencies," including by integrating AI technologies into its supply chains.
JD.com, which is currently China's largest online retailer by revenue, was first formed in the late 1990s before pivoting into e-commerce in the early 2000s and later becoming the first Chinese online retailer to list on the Nasdaq in 2014.
-Ciara Linnane
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(END) Dow Jones Newswires
08-27-24 0635ET
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