PDD Stock Down 22% in August: What Happened to the Chinese E-Commerce Giant? – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), PDD Holdings (NASDAQ:PDD)

PDD Holdings Inc PDD The company’s shares fell significantly in August, falling about 22% to $95.55, largely due to lower-than-expected second-quarter revenue.

What happened: Parent company Temu announced that revenue rose 86% year over year to $13.36 billion in the second quarter of its fiscal year. That figure missed analysts’ consensus of $14.02 billion.

However, the company’s adjusted earnings per ADS of $3.20 exceeded expectations.

Despite recent progress, company executives noted the challenges ahead for the company, including slower revenue growth and intensifying competition.

Several analysts responded by lowering their price targets, Citigroup decrease in the value of shares from To buy Down Neutral.

Among other noteworthy analyst revisions following the release of earnings results, Goldman Sachs lowered his price target from $184 to $165, while maintaining a Buy rating. Analyst Ronald Keung noted that the market may not be recognizing the strength of the PDD ecosystem and the clearer prospects for gross sales volume growth.

He also noted that the company’s shift away from aggressive ad monetization could lead to more sustainable growth.

Also Read: Temu Parent PDD Shares Fall After Death Cross Hit: Time to Pull Out?

What else: PDD, formerly known as Pinduoduo Inc., said its online marketing services revenue in the second quarter increased 29% year-over-year.

Revenue from transaction services increased by 234% year-on-year.

The company also reported adjusted operating profit of $4.81 billion, up 139% year-over-year, and had $39.2 billion in cash as of June 30.

Despite significant progress, PDD management stressed that the company faces challenges going forward, including expected pressure on revenue growth and profitability.

Investors can gain exposure to PDD by investing in Invesco QQQ Trust, Series 1 QQQ.

How to buy PDD stocks

You’re probably wondering how to participate in the PDD Holdings stock market – whether that’s by buying shares or even trying to bet on the company’s performance.

Buying stocks is usually done through a brokerage account. You can find a list of possible trading platforms here . Many of them will let you buy “fractional shares,” which allows you to own parts of a stock without buying the whole share. For example, some stocks, like Berkshire Hathaway or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that amount, brokerages will let you do so.

In the case of PDD stock, which was trading at $94.96 at the time of publication, $100 would buy 1.05 shares.

If you want to bet against the company, the process is more involved. You’ll need access to an options trading platform or a broker that will let you “short” a stock by lending you shares to sell. The process for selling stocks short can be found here . Otherwise, if your broker allows you to trade options, you can either buy a put or sell a call at a strike price higher than the price the stock is currently trading at—either way, allowing you to profit from a decline in the stock price.

Price action:According to data from Benzinga Pro, PDD’s 52-week high was $164.69 and the low during the same period was $88.01.

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