Why PDD Holdings (PDD) Shares Are Plunging Today - PDD Holdings (NASDAQ:PDD)

PDD Holdings Inc. PDD, which owns and operates a portfolio of businesses, including Pinduoduo and Temu, reported fourth-quarter FY22 sales growth of 46% year-on-year to $5.77 billion, missing the consensus of $5.95 billion.
Revenues from online marketing services and others rose 38% Y/Y to $4.489 billion.
Revenues from transaction services jumped 86% Y/Y to $1.275 billion.
Revenues from merchandise sales declined 29% Y/Y to $8.4 million.
PDD posted a non-GAAP operating profit of $1.681 billion, up 38% Y/Y.
Non-GAAP earnings per ADS of $1.21 matched the consensus estimate.
PDD held $21.7 billion in cash and equivalents and generated $3.849 billion in operating cash flow.
"We will further step up our investments in technology to drive sustainable growth of our company," said Jun Liu, VP of Finance of PDD Holdings.
Price Action: PDD shares traded lower by 13.31% at $79.70 in the premarket on the last check Monday.

Why PDD Holdings Shares Are Plunging Today