PDD Holdings Stock Is Shooting Upwards Wednesday, What's Going On?

Zinger Key Points
  • PDD Holdings' Q4 revenue soars 123% Y/Y to $12.52B, surpassing estimates with earnings spike.
  • Stock jumps as Pinduoduo reports significant gains in online marketing and transaction services revenue.

PDD Holdings Inc PDD reported fourth-quarter fiscal 2023 revenue growth of 123% year-on-year to $12.52 billion (CNY88.88 billion), beating the consensus of $11.01 billion.

The Chinese online retailer’s adjusted earnings per ADS of $2.40 (CNY17.32) increased from CNY8.34 Y/Y, beating the consensus of $1.60. The stock price climbed after the results.

Revenues from online marketing services and others rose 57% Y/Y to $6.86 billion.

Revenues from transaction services jumped 357% Y/Y to $5.66 billion.

Also Read: Alibaba’s Strategic Shift – New CEO for Grocery Arm and Bold Move to Enhance HarmonyOS with Huawei

The Alibaba Group Holding Limited BABA rival posted an adjusted operating profit of $3.46 billion, up 112% Y/Y.

Pinduoduo held $30.6 billion in cash and equivalents as of December 31, 2023, and generated $5.2 billion in operating cash flow.

“In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,” said Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings.

The stock gained 62% last year. Investors can gain exposure to the stock via Global X MSCI China Consumer Discretionary ETF CHIQ and Invesco China Technology ETF CQQQ.

Price Action: PDD shares traded higher by 15.7% at $147.52 in the premarket on the last check Wednesday.

Also Read: Alibaba Unveils New Processor and Open-Source Laptop Based On RISC-V Processors

Photo via Shutterstock

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