Shares of PDD Holdings PDD This week 19.4% fell to $ 95.60 after the Chinese e-commerce giant reported disappointing results of the first quarter on Tuesday.
What to know: Turnover increased by 10% on an annual basis to $ 13.18 billion, but was not affected by the estimate of $ 14.17 billion consensus. The adjusted profit per advertisements fell to $ 1.56, well below the expected $ 2.49, and the operational margins fell sharply from 32.9% to 19.1%.
Management attributed margin compression to significant investments in trade support and platform eco system improvements, and positioned it as a long-term strategy to stimulate sustainable growth in the midst of growing competition and uncertainties in world trade.
Analysts responded quickly, benchmark lowered its price target from $ 160 to $ 128, while China Renaissance reduced the shares to keep with a target of $ 107.
Despite the data -driven and efficient platform of PDD, Wall Street expects further downward income revisions due to the uncertain payout line of its strategic expenses. International income also performed and worsened the concern about investors.
Earlier this year, the share was won due to the alleviation of the trade tensions of the US-China, but the latest profit mass and continuous margin pressure and tariff uncertainty have reversed the sentiment, which emphasizes challenges in balancing growth investments with profitability.
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How to buy PDD shares
In addition to going to a brokerage platform to buy a share – or fractional share – of shares, you can also gain access to shares, either by buying an Exchange Traded Fund (ETF) that holds the share itself, or by assigning you to a strategy in your 401 (K) that would like to want shares in an investment fund or other.
In the case of PDD Holdings, for example, it is in the discretionary sector of the consumer. An ETF will probably have shares in many liquid and large companies that help follow that sector, so that an investor can be exposed to the trends within that segment.
According to data from PetrolPDD has a highlight of 52 weeks of $ 155.67 and a lowest point in 52 weeks of $ 87.11.
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