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PDD Reports Strong Q3 Growth, Yet Its Stock Falls

Word on the StreetThursday, Nov 21, 2024 7:06 am ET
1min read

PDD just released its financial report for the third quarter of 2024, ending September 30th: In the last quarter, total revenue was 99.3544 billion yuan, a year-on-year increase of 44%. Net income attributable to PDD's shareholders was 24.9807 billion yuan, a year-on-year increase of 61%; Non-GAAP net income attributable to PDD's ordinary shareholders was 27.4587 billion yuan, a year-on-year increase of 61%.

Specifically, revenue from online marketing services and other services was 49.351 billion yuan (about $7.0325 billion), a 24% increase compared to 3.6877 billion yuan in the same period of 2023. Revenue from transaction services was 50.0034 billion yuan (about $7.1254 billion), a 72% increase compared to 2.91527 billion yuan in the same period of 2023.

This quarter, PDD introduced a series of support policies, including the 10 billion reduction initiative, the eastern expansion strategy of e-commerce, and support plans for new merchants. Against this backdrop, more than 10 million merchants received support to reduce costs and improve efficiency, and consumers could enjoy a richer and more diverse supply of high-quality goods.

PDD emphasized that through this round of adjustments, the company not only improved its services to merchants but also launched a series of consumer stimulus measures before key points such as the Double 11 shopping festival. The policies it promoted include the return of technical service fees, the reduction of store guarantees, and the exemption of logistics transit fees in remote areas. PDD is committed to creating a high-quality ecosystem to cope with the fierce competition in the e-commerce market and to create long-term value for participants on and off the platform.

At the same time, significant investments on the supply side have led to a richer supply of agricultural products, domestic Chinese brands, and global high-quality goods. This strategy has met the growing demand of users and has also received positive feedback from both the supply and demand sides. PDD plans to continue to implement the high-quality development strategy firmly in the next few quarters, improving the platform and industrial ecology.

However, in the U.S. stock market, PDD's performance last quarter seems not to have met investors' expectations. After the latest financial report was announced, PDD's U.S. stocks fell more than 16% in pre-market trading. The decline later narrowed.

In the future, PDD will continue to seek new growth points in ecosystem construction and market competition. For those who pay attention to the development of PDD, how the company maintains growth in the constantly changing market environment is an issue that needs to be closely observed

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rareinvoices
11/22
Lol, PDD's stock drop after the report. Looks like the market's on another wild ride. 🤷‍♂️
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lem_lel
11/22
Who else sees potential in PDD's focus on domestic Chinese and global brands? It's like they're prepping for long-term domination
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threefold_law
11/21
Holding long-term. PDD has potential.
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serenity561
11/21
PDD's dip feels like a classic overreaction
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No_Price_1010
11/21
$PDD's policies boost merchants and consumers alike.
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TheOSU87
11/21
Double 11 strategies sound solid, but investor reactions weird. Is $PDD gonna be long-term winner or nah?
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waterlimes
11/21
New growth points are PDD's ticket to victory
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Ubarjarl
11/21
Holding $PDD long-term; volatility just noise.
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slumbering-gambit
11/21
PDD's got those numbers, but Wall Street's like, "Nah, not enough." It's like they're speaking different languages. Growth's solid, but I guess investors want more, right?
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Qwazarius
11/21
Double 11 will boost PDD.
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Anonym0us_amongus
11/21
PDD's support policies are a game changer 🚀
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Progress_8
11/21
10 billion reduction initiative sounds like PDD flexing its muscle. Keeping merchant costs down while boosting quality? Solid game plan.
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Paper_Coin
11/21
PDD dropping after Q3 report? Market always panics but I'm holding. Doubling down on these e-commerce giants for the long haul. 🚀 $TSLA is always volatile, but PDD provides more stability IMO.
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urfaselol
11/21
Double 11 vibes could change the game 🎉
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Traditional_Wave8524
11/21
Investing heavily pays off, but investors impatient.
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