PDD Holdings Stock Slides Nearly 20% After Earnings Miss, Margin Pressure

Shares of PDD Holdings PDD plunged 19.4% this week to $95.60 after the Chinese e-commerce giant reported disappointing first-quarter results on Tuesday.

What To Know: Revenue rose 10% year-over-year to $13.18 billion but fell short of the $14.17 billion consensus estimate. Adjusted earnings per ADS dropped to $1.56, well below the expected $2.49, and operating margins fell sharply from 32.9% to 19.1%.

Management attributed the margin compression to significant investments in merchant support and platform ecosystem enhancements, positioning it as a long-term strategy to drive sustainable growth amid growing competition and global trade uncertainties.

Analysts responded swiftly, Benchmark cut its price target from $160 to $128, while China Renaissance downgraded the stock to Hold with a $107 target.

Despite PDD's data-driven and efficient platform, Wall Street expects further downward earnings revisions due to the uncertain payoff timeline of its strategic outlays. International revenues also underperformed, exacerbating investor concerns.

The stock had gained earlier this year amid easing U.S.-China trade tensions, but the latest earnings miss and ongoing margin pressure and tariff uncertainty have reversed sentiment, highlighting challenges PDD faces in balancing growth investment with profitability.

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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 $155.67 and a 52-week low of $87.11.

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