JD.Com Inc (NASDAQ:JD) saw its stock fall 3.6% to $32.39 Thursday morning following comments from China's Ministry of Commerce denying any current trade negotiations with the United States.
What To Know: As a leading e-commerce platform heavily reliant on cross-border logistics, consumer sentiment and global supply chain efficiency, JD.com stands to benefit significantly from tariff reductions or renewed trade cooperation between the world's two largest economies.
Hopes for a thaw in U.S.-China trade tensions had lifted investor sentiment earlier in the week after reports of potential de-escalation, including remarks from U.S. Treasury Secretary Scott Bessent and President Trump hinting at tariff reviews.
However, the ministry's firm dismissal of any ongoing talks shattered those expectations, raising concerns about prolonged tariffs on Chinese exports.
For JD.com, which depends on affordable imports, stable U.S. investor confidence, and a robust domestic consumer base tied closely to macroeconomic conditions, the lack of trade progress adds pressure. The company’s margins and cross-border sales could be further strained if tariffs persist.
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Investors can gain exposure to JD.com by investing in the iShares China Large-Cap ETF (NASDAQ:FXI).
By now you're likely curious about how to participate in the market for JD.com – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of JD.com, which is trading at $33.56 as of publishing time, $100 would buy you 2.98 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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