Jd.com (JD) Traded Down Due to Its Aggressive Expansion

Core Insights - Ariel Investments' "Ariel Global Fund" reported a +7.38% return in Q2 2025, underperforming the MSCI ACWI Index (+11.53%) and MSCI ACWI Value Index (+5.84%) [1] - The fund's performance was influenced by volatility due to tariff announcements and a surge in AI-themed stocks [1] Company Analysis: JD.com, Inc. - JD.com, Inc. (NASDAQ:JD) experienced a one-month return of 11.36% and a 52-week gain of 28.94%, with a market capitalization of $53.45 billion as of September 16, 2025 [2] - Concerns regarding JD.com's aggressive expansion into the food delivery sector led to a decline in stock performance during the quarter, despite strong results in its core e-commerce business [3] - The core e-commerce segment showed double-digit top-line growth and margin expansion, prompting the fund to trim its position in JD.com due to emerging concerns [3] Hedge Fund Interest - JD.com, Inc. was held by 54 hedge fund portfolios at the end of Q2 2025, a decrease from 66 in the previous quarter [4] - While JD.com is recognized for its investment potential, the company is viewed as having less upside compared to certain AI stocks [4]