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JD.com shares fall due to slower growth and cautious outlook

We are all aware that the e-commerce business is a very cut-throat one, and this is also the reason why a lot of people are hesitant to get into this sector because of the considerable cash flow needed to run the business along with the fact that it takes a lot of time and effort to be profitable and the spend needs to be higher than usual as well. Right now, we are talking about JD.com, and they have just shared their quarterly revenue figures and the projection for the year coming ahead.

But before that, we should tell you that the JD.com shares fell sharply as soon as the announcements were made and this is because the company announced a 7% rise in the quarter ended December compared to 23% growth in October to December Quarter in FY 2021-2022. This could be because of the fact that many people started to fell less pressure from the COVID-19 pandemic and a lot of people started to shop online once again.

However, it is also known that the last holiday season should have been even better because most of the online shoppers started to go outdoors as well as shop big and spend on the things they needed in the holiday season. But the negative growth is because of the effects of economic slowdown and the recession that is looming on everyone’s head right now. Since November, JD.com’s shares have fallen to their lowest level yet and at the time of writing this article, their shares fell by as much as 12%.

JD.com also said that they expect a slower recovery and project the holiday season this year to be slower in terms of growth as well. JD CEO Xu Lei said, “What we hope to do is to transform our marketing strategy from focusing on big sales to creating an environment of everyday low prices, gradually shifting people’s shopping behavior.” “These programs will have a limited impact on our margins.” JD also confirmed that they are exiting the SouthEast Asian markets because the investment required to be an established player there would be too high.

Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org
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