PDD Holdings Inc PDD reported weaker-than-expected revenue for its fiscal second quarter on Monday.
The company posted revenue growth of 86% year-on-year to $13.36 billion (97.06 billion Chinese yuan), missing the analyst consensus estimate of $14.02 billion. The Chinese online retailer’s adjusted earnings per ADS of $3.20 (23.24 Chinese yuan) increased from 10.47 Chinese yuan Y/Y, beating the analyst consensus estimate of $2.73.
"While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead," said Mr. Lei Chen, Chair and Co-CEO of PDD Holdings.
"In the past quarter, our revenue growth rate slowed quarter-on-quarter. Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges," said Ms. Jun Liu, VP of Finance of PDD Holdings.
PDD shares fell 28.5% to close at $100.00 on Monday.
These analysts made changes to their price targets on PDD following earnings announcement.
- Bernstein analyst Robin Zhu maintained PDD Holdings with an Outperform and lowered the price target from $235 to $170.
- B of A Securities analyst Joyce Ju maintained the stock with a Buy and slashed the price target from $206 to $170.
- Citigroup analyst Alicia Yap downgraded PDD from Buy to Neutral and lowered the price target from $194 to $120.
Considering buying PDD stock? Here’s what analysts think:
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