$PDD Holdings (PDD.US)$ pdd holdings $PDD's financial report...

Mic1031 commented on a stock · Aug 26, 2024 22:33

$PDD Holdings (PDD.US)$ pdd holdings $PDD's financial report fell 27% from the opening, below expectations, causing a significant drop. The reasons for the decline are: first, revenue of 97 billion RMB, market expectation was 99.9 billion. Another reason is the future exemption of billions in transaction fees, preparing to sacrifice profit. It is still due to the market's overly high expectations, any slight disappointment could lead to panic selling. It also illustrates the current market's extreme focus on fundamentals and partially explains the very tense market sentiment.

Actually, the growth rate itself is quite fast. The revenue in the second quarter of last year was 52 billion, and this year it increased by 86% to 97.9 billion. Moreover, in the future, with a waiver of billions in fees, the market was scared by this figure of billions. Now, pdd holdings' single quarter profit exceeds 30 billion, and by the end of the second quarter, pdd holdings had over 280 billion yuan in cash and cash equivalents on hand. The waiver of billions in fees should be okay.

Currently, the pe ttm has dropped to around 10 times, with a static pe ratio of over 17 times in the previous fiscal year. The valuation digestion speed is still very fast, and in the short term, it feels like the market has overreacted. Of course, what needs attention in the medium to long term is whether this indicates a decline in purchasing power behind. After all, this represents the most fundamental and bottom-level purchasing power domestically, which needs to be closely monitored in the long term. (Repost)

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