PDD Holdings’ (NASDAQ:PDD) shares jumped by nearly 15% in the early session today after the Chinese eCommerce major’s fourth-quarter top line jumped by a whopping 123% year-over-year to $12.52 billion. The figure exceeded estimates by $1.47 billion. Similarly, Earnings Per American Depository Share (EPADS) of $2.40 comfortably landed past expectations by $0.83.
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This performance was driven by robust demand amid an improvement in consumer sentiment. During the quarter, PDD’s revenue from online marketing services jumped by 57% to $6.86 billion. Concurrently, its revenue from transaction services skyrocketed by 357% to $5.55 billion.
While the company’s cost of revenue increased by 293%, its operating profit increased by 146% during this period. Importantly, PDD had $30.6 billion in cash reserves at the end of December 2023.
What Is the Stock Price Prediction for PDD?
Today’s price gains come after a nearly 13% decline in PDD’s share price so far this year. Overall, the Street has a Strong Buy consensus rating on the stock alongside an average PDD price target of $181.44. However, analysts’ views on PDD could see changes following today’s impressive earnings report.
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