PDD
📉 Revenue growth was lower than expected, at 24%, due to increased internal competition and the impact of US tariffs.
💰 Net profit increased by 18%, reaching 27.4 billion yuan, showing some resilience despite the challenges.
🔴 The stock fell by 7.2% in pre-market trading in the United States, reflecting investor concerns about future growth.
@bernardodegarcia:
“Pinduoduo’s quarterly results, falling 7%. Their revenue grew 24%, less than expected, after the intensification of internal competition and the slowdown of its expansion due to US tariffs. The e-commerce company reported revenues of just over 110 million yuan for the December quarter, and its net profit increased 18% to 27.4 billion yuan. Pinduoduo shares in the United States fell 7.2% before the market opened. Pinduoduo’s results come after its rivals, Jingdong and Alibaba, reported better-than-expected sales for the December quarter, when Beijing intensified policies such as subsidies and incentives for exchange in order to boost spending in the Asian nation. Beijing has prioritized the expansion of internal demand while the country seeks to offset the impact of US President Donald Trump’s tariffs and reach a growth target of around 5%. If it was already cheap, trading at 11 times earnings, trading at, if we take out 7 here, it may be trading close to 10. Well, obviously, it may be quite interesting.”
View the exact part of the @bernardodegarcia video where Pinduoduo is discussed here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Pinduoduo (PDD) at the following link. PDD stock.
