PDD Holdings Beat Q4 Estimates as Revenue Doubled, Wall Street Lifted Price Targets
PDD Holdings Inc. powered higher on Wednesday, after the e-commerce company reported fourth-quarter earnings that rose well above expectations, citing signs of improving consumer spending.
The Chinese e-commerce giant's total revenues soared nearly 123% year-over-year to RMB88.88B (about $12.52B). Both top and bottom lines surpassed analysts' estimates.
Revenue from online marketing services and others grew about 57% to RMB48.68B ($6.86B), while revenues from transaction services soared 357% year-over-year to RMB40.20B (about $5.66B).
“In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,” said co-Chief Executive Jiazhen Zhao.
“In 2024, we remain dedicated to further improving consumer experiences, enhancing technology innovations, and generating positive impacts in our communities,” added co-Chief Executive Lei Chen.
Following the release of fourth-quarter earnings, Wall Street raised their price targets for PDD.
• Citi raised the firm's price target on PDD Holdings to $185 from $170 and keeps a Buy rating on the shares. The company concluded 2023 with another impressive quarter on mindshare gains and a growing take rate, the analyst tells investors in a research note.
• Barclays analyst Jiong Shao raised the firm's price target on $Pinduoduo Inc.(PDD)$
• Jefferies analyst Thomas Chong raised the firm's price target on PDD Holdings to $161 from $157 and keeps a Buy rating on the shares after the company reported a Q4 beat and management highlighted its high quality strategies across consumption, supply and ecosystems during the call. For the domestic market, PDD highlighted improving consumer sentiment and an emphasis on satisfying demand, while for overseas operations the company said it is in early stages and is focused on innovations and operations with plans to continue to invest for the long term, Chong wrote in a note.
•$Pinduoduo Inc.(PDD)$
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