PDDs Surging 144B Volume and 49thRank Activity Clash with Bearish Technical Signs as Mixed Earnings Hike Profitability Concerns

On August 29, 2025, PDD Holdings (PDD) traded with a volume of 1.44 billion, marking a 108.21% increase from the previous day and ranking 49th in market activity. The stock closed down 1.64%, reflecting a bearish technical setup despite its elevated trading volume.

Technical analysis highlighted a critical juncture for the stock as its 15-minute chart triggered a MACD Death Cross and KDJ Death Cross at 09:45 ET. These indicators suggest a potential continuation of downward momentum, signaling caution for investors. While PDD’s 30-day moving average was approached intraday, an RSI reading of 78.69 indicated prior aggressive buying pressure had reached overbought levels.

Strategically, the company’s Q2 2025 results revealed mixed outcomes. Revenue rose 7% YoY to RMB103.98 billion, but operating profit declined 21% to RMB25.79 billion. A RMB100 billion reinvestment in rural logistics and merchant support underscores its focus on China’s middle-income demographic and global e-commerce expansion. However, short-term profitability pressures remain evident.

Historical backtests show PDD has historically delivered strong returns following earnings beats. The stock’s pre-market decline of 2.06% despite a 49% EPS surprise highlights lingering skepticism about profit sustainability. Long-term investors may still find value in its ecosystem-driven growth and Temu’s 416.5 million monthly active users, but near-term volatility and margin risks warrant hedging strategies.

Backtesting data indicates that when PDD exceeds earnings expectations, the stock tends to outperform in subsequent periods. This historical pattern suggests the current technical challenges, while concerning, may not preclude future upside for patient investors.