Why Dada Nexus Stock Rocketed Almost 22% Higher on Tuesday

Chinese delivery company Dada Nexus (NASDAQ: DADA) was the subject of some rather impactful news on Tuesday. Its former strategic investor sold all of its shares in the delivery company to one of Dada's peers in a move that excited investors. In this market, they piled into Dada's American depositary shares (ADS) to the point where the stock closed the day nearly 22% higher. Making the company a particular outlier was the fact that the S&P 500 index traded flat across that session.In a regulatory filing, Dada revealed that a subsidiary of U.S. retail giant Walmart has sold its entire stake in the Chinese company. All told, the Walmart unit, Global Pinnacle Corporation, divested nearly 87.5 million of Dada's ordinary shares and slightly under 1.9 million of its ADS. The buyer was Chinese online retailer JD.com. Walmart's stake comprised slightly over 9% of Dada's equity. With the shift in ownership, JD.com, already a major Dada shareholder, increased its majority stake in the company to more than 63%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool