- Adjusted earnings per American depositary receipt came in at 18.59 yuan, falling short of the estimated 20.19 yuan.
- Reported revenue was 99.35 billion yuan, below the anticipated 102.83 billion yuan.
- Revenue from online marketing services and other ventures reached 49.35 billion yuan, slightly exceeding expectations of 49.01 billion yuan.
- Transaction services revenue was lower than expected, reporting 50.00 billion yuan against a forecast of 53.01 billion yuan.
- Adjusted net income was 27.46 billion yuan, compared to an estimated 29.21 billion yuan.
- Total operating expenses amounted to 35.35 billion yuan, slightly higher than the projected 35.08 billion yuan.
- Sales and marketing expenses were 30.48 billion yuan, overshooting the estimate of 30.18 billion yuan.
- General and administrative expenses were 1.81 billion yuan, close to the expected 1.82 billion yuan.
- Research and Development (R&D) expenses were 3.06 billion yuan, under the estimate of 3.56 billion yuan.
- Earnings per American depositary receipt were reported at 16.91 yuan, below the anticipated 17.28 yuan.
- Shares declined 5.1% in pre-market trading, settling at $110.50 with a volume of 101,084 shares traded.
PDD Holdings on Smartkarma
Analyst coverage on PDD Holdings on Smartkarma reveals varying sentiments from different experts. Eric Chen‘s report, “Pinduoduo: Behind Its Efficiency Edge,” highlights Pinduoduo’s higher take-rate despite increased costs for user traffic aggregation compared to Alibaba, showcasing Pinduoduo’s efficiency. Ming Lu‘s research, “China Consumption Weekly,” mentions PDD’s subsidiary, Temu, becoming the second-largest global e-commerce website, while Meituan merges departments to reduce expenses and Mercedes-Benz exits a joint venture with BYD.
On the contrary, Devi Subhakesan‘s analysis, “Weekly Consumer Tales,” warns of potential challenges for PDD’s US cross-border business due to proposed rules, while Baptista Research‘s report praises PDD Holdings Inc.’s substantial revenue growth in the second quarter of 2024 attributed to robust online marketing and transaction services. Eric Chen‘s second report, “Pinduoduo (PDD US): Oversold on Concerns About Slowdown,” cautions about a perceived slowdown in growth, leading to an oversold stock but not expecting a re-rating until the second half of 2025.
A look at PDD Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
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
Based on Smartkarma Smart Scores, PDD Holdings Inc. shows a promising long-term outlook with strong indicators for growth and resilience. With a high score of 5 in Growth and Resilience, the company demonstrates a robust potential for expansion and ability to withstand market challenges. PDD Holdings‘ focus on the digital economy aligns with current trends, allowing them to tap into increased productivity and new opportunities for local communities and small businesses.
Although the company scores lower in Value and Momentum, with scores of 2 and 2 respectively, the overall positive outlook driven by Growth and Resilience suggests that PDD Holdings is positioned well for future success. Their network of sourcing, logistics, and fulfillment capabilities provides a solid foundation for sustaining and expanding their portfolio of businesses in the evolving digital landscape.
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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