PDD Stock Slips Following Alibaba Earnings: What's Going On?

Shares of Chinese e-commerce giant PDD Holdings Inc – ADR PDD fell 2.9% to $115.40 on Thursday, mirroring weakness in Alibaba Group’s stock, which dropped 7.2% to $124.37 after reporting fourth-quarter results.

What To Know: Despite reporting adjusted earnings per ADS of $1.73—beating analyst expectations of $1.48—Alibaba’s quarterly revenue of $32.58 billion came in below the $33.08 billion consensus estimate.

The top-line miss overshadowed solid year-over-year growth in several segments, including a 22% increase in international digital commerce revenue and an 18% rise in cloud services.

Read Also: Powell Signals Fed May Shift Inflation Strategy After 5 Years Of Economic Upheaval

Investors appeared concerned by slowing growth in core commerce and a 12% year-over-year decline in logistics unit Cainiao, which is undergoing restructuring. Moreover, a 76% drop in free cash flow, despite a healthy cash position of over $82 billion, raised questions about Alibaba's capital efficiency.

Why It Matters: With Alibaba often viewed as a bellwether for China's consumer and tech sectors, its weaker-than-expected results and market reaction weighed on PDD stock. The selloff also reflects broader investor caution around China's e-commerce outlook on Thursday.

Read Also: CoreWeave Stock Is Volatile Thursday: What’s Going On?

How To Buy PDD Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in PDD Holdings’ case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PDD has a 52-week high of $164.69 and a 52-week low of $87.11.