PDD Holdings drops 5.1% post Q3 earnings, facing competition and profitability concerns

From Nasdaq: 2024-11-29 10:18:00

PDD Holdings has seen a 5.1% decline in share price post its Q3 earnings release, despite a 44% revenue growth to RMB99.4 billion. Intensifying competition and market challenges, coupled with mounting operating expenses and a RMB10 billion fee reduction program, pose profitability concerns. Operating cash flow also dropped by 15.4%.

Investors are advised to consider selling PDD Holdings due to its fee reduction strategy impacting margins, rising competition, and increased operating expenses. Despite a seemingly attractive P/E ratio, concerns about future growth and profitability persist. The company’s shift towards merchant support and ecosystem development creates short-term uncertainty.

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Read more at Nasdaq: PDD Holdings Plunges 5.1% Since Q3 Earnings: Time to Sell the Stock?