(Bloomberg) JD.com Inc., the Chinese online retailer that a year ago was a favorite among hedge fund managers including Tiger Management LLC’s Julian Robertson, is quickly losing its allure.
The U.S.-traded stock has plunged 37 percent this year, wiping out almost $17 billion in market value. The number of shares borrowed for short selling touched a record on June 15 after more than doubling in less than a month. Hedge funds including Tiger and Lone Pine Capital have been bailing out.
The turnaround comes as China’s slowing economy and intensifying e-commerce competition crimp the company’s expansion. With sales growth flagging, investors are increasingly questioning when, or even if, the 12-year-old company will ever become profitable.
