PDD Holdings Inc (NASDAQ:PDD) reported downbeat earnings for its fiscal third quarter 2024 on Thursday.

The company posted revenue growth of 44% year-on-year to $14.16 billion (68.84 billion Chinese yuan), missing the analyst consensus estimate of $14.47 billion. The Chinese online retailer’s adjusted earnings per ADS of $2.65 (18.59 Chinese yuan) increased from 11.61 Chinese yuan Y/Y, missing the analyst consensus estimate of $2.82. The stock plunged after the print.

Revenues from online marketing services and others rose 24% Y/Y to $7.03 billion. Revenues from transaction services jumped 72% Y/Y to $7.13 billion.

Adjusted operating profit grew by 48% Y/Y to $3.81 billion. PDD Holdings held $44.0 billion in cash and equivalents as of September 30, 2024. The company generated $3.92 billion in operating cash flow.

“Over the past quarter, our focus remained on driving the high-quality development of the platforms,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. “We are committed to investing consistently and patiently in our platform ecosystem to deliver impactful results over the long run.”

PDD shares fell 4.8% to trade at $99.06 on Friday.

These analysts made changes to their price targets on PDD following earnings announcement.

• JP Morgan analyst Andre Chang downgraded PDD Holdings from Overweight to Neutral and lowered the price target from $170 to $105.
• Benchmark analyst Fawne Jiang maintained PDD Holdings with a Buy and cut the price target from $185 to $160.
• Jefferies analyst Thomas Chong, on Thursday, maintained PDD with a Buy and lowered the price target from $181 to $171.

Considering buying PDD stock? Here’s what analysts think:

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