Published on 12 Jan 2024 on Motley Fool via Yahoo Finance
Why Dada Nexus Plunged and Took JD.com With It
Shares of Dada Nexus (NASDAQ: DADA) were taking a dive this week after the Chinese grocer and online delivery platform said in an SEC filing that an audit revealed certain suspicious practices that "may cast doubt" on revenues from the company's online advertising and marketing services.
It also said that its revenue from online advertising and marketing services was overstated by roughly $70 million in the first three quarters of 2023, and that its revenue guidance for the fourth quarter was no longer valid.
As a result, the stock was down 56% for the week as of Thursday at 12:50 p.m. ET, according to data from S&P Global Market Intelligence, and JD.com (NASDAQ: JD) was also down 4.7% on the news, as JD.com is the majority shareholder in Dada Nexus.