Temu Parent PDD's Stock Tumbles After a Big Earnings Miss Amid 'Intensified Competition'
The U.S.-listed shares of Temu parent $Pinduoduo Inc.(PDD)$ tumbled 8% in premarket trading Thursday, after the China based e-commerce company reported third-quarter results that missed expectations by wide margins, as the company invested more in its business as competition intensified. Net income for the quarter to Sept. 30 rose to 24.98 billion renminbi ($3.56 billion), or RMB16.91 per American depositary share, from RMB15.54 billion, or RMB10.60 per ADS, in the same period a year ago. Excluding nonrecurring items, adjusted EPS of RMB18.59 came up well short of the FactSet consensus of RMB19.58. Revenue grew 44.3% to RMB99.35 billion ($14.16 billion), below the FactSet consensus of RMB102.87 billion. Cost of revenue rose more than revenue, up 48% to RMB39.71 billion, to knock gross margin down to 60% from 61%. "Our topline growth further moderated quarter-on-quarter amid intensified competition and ongoing external challenges," said Vice President of Finance Jun Liu. The stock has dropped 20.4% year to date through Wednesday, while the iShares MSCI China ETF (MCHI) has gained 17.8% and the S&P 500 has advanced 24.1%.
For the moment I don't consider to buying this stock because of the unpredictable market now. Step aside and wait for the opportunity.
@TigerStars @CaptainTiger @TigerWire @Daily_Discussion @Tiger_chat @Tiger_comments @MillionaireTiger
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