Dow Jones Newswires: shares slump in Hong Kong after weaker-than-expected revenue guidance

by | Mar 9, 2023 | Stock Market

Shares of e-commerce platform
were sharply lower in early trade in Hong Kong Friday after its first-quarter revenue guidance missed estimates, analysts say. The Chinese tech company’s shares fell as much as 12% to 158 Hong Kong dollars (US$20.13) in Asia after the company warned that weak consumer sentiment could continue to weigh on its revenue.’s ADRs
closed 11% lower at US$41.68 Thursday. The e-commerce platform’s revenue guidance likely resulted in “fresh market concerns,” say Nomura analysts Jialong Shi and Thomas Shen in a note. The company’s management said it expects JD Retail’s first-quarter revenue to drop by a low-to-mid single-digit percentage, compared with the same period a year earlier. That was below market expectations for 1.0%-3.0% growth, the Nomura analysts added. said the weak first-quarter revenue guidance was due to fragile sentiment among China consumers, who have cut back on discretionary purchases following three years of living with the pandemic, Nomura added. The cautious guidance from indicates that there is “low visibility” on the pace of the company’s recovery from the pandemic, Citi analysts said in a research report. Citi added that while’s fourth-quarter net profit beat expectations, the company’s product revenues were softer-than-expected, reflecting Covid-19 related disruptions and macroeconomic headwinds. “We believe underlying macro wea …

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