- PDD’s adjusted earnings per American depositary receipts (ADS) beat estimates, coming in at 17.32 yuan versus the estimated 11.28 yuan.
- Revenue was higher than expected, with a total of 88.88 billion yuan compared to the estimated 79.87 billion yuan.
- Revenue from online marketing services and others exceeded estimates, at 48.68 billion yuan against the estimated 46.03 billion yuan.
- Transaction services revenue was also higher than expected, at 40.21 billion yuan versus the estimated 34.24 billion yuan.
- Total operating expenses came in under estimates, at 31.41 billion yuan compared to the estimated 31.93 billion yuan.
- Sales and marketing expenses were lower than estimated, at 26.64 billion yuan versus the estimated 27.56 billion yuan.
- Research and development (R&D) expenses were also lower than expected, at 2.86 billion yuan against the estimated 3.24 billion yuan.
- According to Mr. Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings, the company experienced growing demand in the fourth quarter due to encouraging consumer sentiment.
- PDD’s shares rose 4.2% in pre-market trading to $133.00 on 147,360 shares traded.
- The company’s stock currently holds 54 buys, 2 holds, and no sells.
PDD Holdings on Smartkarma
PDD Holdings, the Chinese e-commerce giant, has been receiving a lot of attention from top independent analysts on Smartkarma, an independent investment research network. Analysts like Eric Chen and Ying Pan have published bullish reports on the company, citing strong earnings, increased revenue, and improved take-rate. In particular, Chen believes that the recent 30% share price correction offers a good entry point for investors, while Pan has raised the target price to US$178. Meanwhile, Steven Holden notes that ownership levels among active Asia Ex-Japan equity funds have hit record highs as funds continue to add exposure to PDD Holdings. However, not all analysts are optimistic, with Baptista Research exploring potential challenges for PDD Holdings in the future. Despite this, many analysts still see potential for growth in the company and are closely monitoring its performance.
A look at PDD Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
PDD Holdings Inc. is a multinational commerce group that is looking towards a bright future. Utilizing the Smartkarma Smart Scores, PDD Holdings has received a score of 5 for both growth and resilience, and a score of 2 for value. This indicates that the company is expected to see significant growth and has a strong ability to withstand challenges.
PDD Holdings Inc. is dedicated to helping local communities and small businesses thrive in the digital economy. With a focus on productivity and new opportunities, the company has built a network of sourcing, logistics, and fulfillment capabilities for its businesses. This has contributed to the company’s impressive scores of 5 for both momentum and resilience, showing its ability to adapt and stay on top of market trends. While the company’s dividend score is lower at 1, the overall outlook for PDD Holdings is positive and promising for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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