
JD.com is expected to experience a significant decline soon. The previous endorsement incident involving Yang Li caused a huge uproar. JD Finance faced massive redemptions, leading to insufficient internal funds to cover the payments. Users who requested redemptions found that the funds came from Industrial Bank transfers, with a subsequent 7-day settlement period. As a result, JD Finance is under tremendous redemption and borrowing pressure. Additionally, JD Finance's online customer service was exposed for insulting users, further proving that JD's internal operations are under high-pressure fatigue due to this incident.
Despite the exposure of this incident, JD.com's stock price did not drop significantly. In fact, from August and September until now, JD.com's stock price has nearly doubled. However, the upward momentum has weakened recently, with the stock mostly moving sideways, raising suspicions of distribution.
Moreover, the latest exposure of JD Mall's profiling incident is infuriating (search for details yourself). The profiling incident suggests that JD.com may have been infiltrated or compromised. Although this bug has been urgently fixed, the fallout from the profiling incident is likely to bring a storm for JD.com.
These are my three key points. Currently, JD.com's sideways trend continues. Seizing the opportunity to short with small positions is advisable $JD.com(JD.US)
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