Long

PDD Stock Jumps 6% Following Strong Q1 Earnings For Temu

stock surged 6% on Thursday, following strong Q1 earnings for Temu parent company PDD Holdings (). Sales jumped 131% year-over-year for the March-ending quarter. On the stock market today, U.S.-listed stock is up 6% at 156.14 in higher than usual volume. Holdings includes China-focused e-commerce platform Pinduoduo and international discount retail platform Temu. Shares of surged nearly 80% in 2023, as Temu expanded rapidly in the U.S. and elsewhere.

Both Alibaba (BABA) and JD.com (JD) posted better-than-expected sales for their March quarters last week. The tech giants are PDD's main competitors in China. Analysts were mostly positive on PDD's Q1 results. Morningstar analyst Chelsey Tam upped the research firm's fair value estimate for PDD stock to by 8% to 230.

PDD Holdings beat first-quarter revenue estimates on Wednesday, powered by its international shopping site Temu and growing consumer interest in its Chinese discount e-commerce platform Pinduoduo. The company's revenue rose 131% to 86.81 billion yuan ($11.99 billion) in the first quarter, compared with analysts' average estimate of 75.66 billion yuan, based on LSEG data. PDD's shares were up 5.7% in pre-market trading.

Consumers in China have turned to less expensive shopping platforms such as Pinduoduo and Bytedance's Douyin at a time when a property sector downturn and rising local debt have weighed on the country's economic growth. 's co-CEO Chen Lei told analysts in a call following the company's earnings release that competition has been fierce in the first quarter, with consumers growing accustomed to making purchases from a variety of platforms, rather than defaulting to just one.

Technical Outlook
stock is up 6.14% as of the time of writing. stock appears to be overbought with a Relative Strength Index (RSI) of 76.78 which made it primed for a trend reversal. The stock's daily price chart depicts a double bottom that lasted for about 5 weeks before the uptrend.

DEXWireNews

⭐⭐⭐ Sign Up for Free ⭐⭐⭐

1) Download our Mobile App >> link-to.app/dexwirenews

2) Join our Telegram >> t.me/DEXWireNews

3) Sign Up for Text Alerts >>
dexwirenews.com/TEXT

4) Follow @DEXWireNews on Social Media

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.