These Analysts Slash Their Forecasts On PDD Holdings Following Q3 Results

PDD Holdings Inc PDD reported downbeat earnings for its fiscal third quarter 2024 on Thursday.

The company posted revenue growth of 44% year-on-year to $14.16 billion (68.84 billion Chinese yuan), missing the analyst consensus estimate of $14.47 billion. The Chinese online retailer’s adjusted earnings per ADS of $2.65 (18.59 Chinese yuan) increased from 11.61 Chinese yuan Y/Y, missing the analyst consensus estimate of $2.82. The stock plunged after the print.

Revenues from online marketing services and others rose 24% Y/Y to $7.03 billion. Revenues from transaction services jumped 72% Y/Y to $7.13 billion.

Adjusted operating profit grew by 48% Y/Y to $3.81 billion. PDD Holdings held $44.0 billion in cash and equivalents as of September 30, 2024. The company generated $3.92 billion in operating cash flow.

“Over the past quarter, our focus remained on driving the high-quality development of the platforms,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. “We are committed to investing consistently and patiently in our platform ecosystem to deliver impactful results over the long run.”

PDD shares fell 4.8% to trade at $99.06 on Friday.

These analysts made changes to their price targets on PDD following earnings announcement.

• JP Morgan analyst Andre Chang downgraded PDD Holdings from Overweight to Neutral and lowered the price target from $170 to $105.
• Benchmark analyst Fawne Jiang maintained PDD Holdings with a Buy and cut the price target from $185 to $160.
• Jefferies analyst Thomas Chong, on Thursday, maintained PDD with a Buy and lowered the price target from $181 to $171.

Considering buying PDD stock? Here’s what analysts think:

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