:max_bytes(150000):strip_icc()/GettyImages-2161154919-bfa6561bfd574822b2b867228643934e.jpg "JD.com shares fall after Walmart sells stake in Chinese e-commerce company")
Key findings
- JD.com’s U.S.-listed shares plunged on Wednesday as Walmart confirmed it had sold its stake in the Chinese e-commerce giant.
- The sale will allow Walmart to “focus on our strong China businesses for Walmart China and Sam’s Club and deploy capital for other priorities.”
- Bloomberg reported that Walmart raised about $3.6 billion from the share sale, which marks the end of an eight-year partnership.
U.S.-listed shares of JD.com (JD) plunged on Wednesday as Walmart (WMT) confirmed it had sold its stake in the Chinese e-commerce giant.
“JD has been a valued partner for us over the past 8 years and we are committed to continuing our business relationship with them,” a Walmart spokesperson said in a statement to Investopedia, He added that the sale will allow the retailer to “focus on our strong China businesses for Walmart China and Sam’s Club and deploy capital to other priorities.”
Walmart sale marks end of 8-year partnership
Bloomberg reported that Walmart raised about $3.6 billion from the stake sale. This marks the end of an eight-year partnership and comes after the Chinese company surprised investors last week by reporting that its quarterly profit had nearly doubled.
JD.com’s American Depositary Receipts (ADRs) fell about 6% to $26.40 as of 10:15 a.m. ET on Wednesday. Walmart shares rose less than 1%.
