Why $PDD is down 15% pre-market after reporting +152% EPS Y/Y growth?
Why $PDD Holdings Inc(PDD)$ is down 15% pre-market after reporting +152% EPS Y/Y growth?
Mr. Lei Chen, Chairman and Co-CEO recognizes recent progress but sees future challenges as well as accepts potential short-term profitability decline:
“While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead,”
''We are prepared to accept short-term sacrifices and potential decline in profitability.''
Ms. Jun Liu, VP of Finance outlines that the revenue growth has slowed and is expected to face further pressure. Profitability may be affected due to ongoing investment and competition:
“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,”
“Profitability will also likely to be impacted as we continue to invest resolutely.”
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