Why is PDD's stock price performing better than BABA's this year?

PDD Holdings (PDD) has outperformed BABA in terms of stock price performance this year, despite both companies belonging to the consumer discretionary sector. Here's why:

1. Revenue Growth: PDD has witnessed an impressive revenue growth rate of 116.83% year-on-year, surpassing BABA's growth rate. This indicates robust business expansion for PDD, which might have attracted investors.

2. Net Margin: PDD's net profit margin stands at 24.24%, showcasing efficient cost management and profitability. This financial health is a positive signal to investors, contributing to its stock's performance.

3. Earnings Release: PDD's earnings release before the market open on March 20, 2024, with its financial report covering Q4 2023, could have positively influenced investor sentiment, boosting the stock price.

4. Sector Performance: The consumer discretionary sector, to which both PDD and BABA belong, has been lagging behind in the U.S. stock market this year. However, PDD's strong growth metrics might have made it a more attractive investment option within this sector.

In summary, PDD's superior revenue growth, efficient cost management, positive earnings release, and standout performance within a lagging sector have contributed to its stock's outperformance compared to BABA.