Why I bought pdd at around $100 it’s oversold I feel and the key take aways
Key Takeaways
1. PDD Holdings' Q2 2024 revenue reached RMB 971 billion,
86% year-over-year increase, but slightly below expected figures. This revenue growth was driven by significant increases in online marketing services and transaction services.$PDD Holdings Inc(PDD)$
2. PDD's adjusted operating profit was RMB 35 billion, up 139% year-over-year, beating consensus estimates. The company's non-GAAP operating profit margin was 36%, compared to 28% in Q2 2023.
3. PDD's net income attributable to ordinary shareholders was
RMB 32 billion, up from RMB 13.1 billion in Q2 2023. However, management expects future earnings to trend lower due to increased investments and competitive pressures.
4. The company plans to invest RMB 10 billion in the first year to support high-quality merchants through transaction fee reductions. Additionally, PDD will focus on enhancing sourcing and fulfillment capabilities to improve product quality and delivery times.
5. PDD's stock price may experience downward pressure due to the management's forecast of declining profitability, increased investments, and global economic uncertainties. However, the company's strong position in the digital economy and focus on supporting small businesses and local communities may provide long-term growth opportunities for patient investors.
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