Zinger Key Points
- PDD Holdings reported Q4 revenue below expectations, overshadowing its better-than-expected earnings per ADS.
- US Tiger Securities downgraded PDD to Hold, and Jefferies cut its price target, contributing to the stock’s decline.
- Volatility can create massive trading opportunities—if you know how to capitalize on it. On Sunday, March 23, at 1 PM ET, Matt Maley is revealing the strategies behind his recent trades made in this volatile market, which have delivered gains up to 450%. Click to register for free.
PDD Holdings PDD shares are trading lower Friday after the company reported fourth-quarter earnings that missed revenue expectations.
What To Know: PDD reported revenue of $15.15 billion for the quarter, a 24% year-over-year increase but below the analyst estimate of $15.68 billion. Revenue from online marketing services rose 17% to $7.81 billion, while transaction services revenue increased 33% to $7.34 billion.
Adjusted operating profit grew 14% to $3.84 billion. The company reported adjusted earnings per ADS of $2.76, surpassing the consensus estimate of $2.56.
Despite earnings beating expectations, the revenue miss has weighed on investor sentiment. Lei Chen, Chairman and Co-CEO, stated that PDD remains committed to its high-quality development strategy to support the broader e-commerce ecosystem.
Following the earnings release, US Tiger Securities downgraded PDD from Buy to Hold and Jefferies cut its price target from $171 to $156.
PDD Price Action: PDD shares were down 2.64% at $127.50 at the time of writing, according to Benzinga Pro.
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