JD.com shares slump on report Walmart plans to sell $3.7 bln stake

American-listed shares of JD.com Inc (NASDAQ:JD ) tumbled in aftermarket trade on Tuesday after Bloomberg reported that supermarket chain Walmart plans to sell its stake in the Chinese e-commerce giant.

JD’s American Depository Receipts slid more than 9% to $25.50 in after-hours trading, hitting an over two-week low.

Walmart Inc (NYSE:WMT ) is seeking to raise about $3.74 billion by selling its stake in JD.com, Bloomberg reported on Tuesday. The U.S. firm is offering 144.5 million shares at a range of $24.85 to $25.85 a share, the report said. 

The report largely undermined gains in JD shares from last week, where the stock rose sharply on stronger-than-expected earnings for the June quarter. 

But the company continues to face increased headwinds from sluggish demand in China, its biggest market. Weakening sales also sparked increased competition with e-commerce rivals Alibaba Group Holdings Ltd (NYSE:BABA ) and PDD Holdings Inc (NASDAQ:PDD ). 

Source: Investing.com