PDD stock soars after big profit and revenue beats, amid 'positive shift' in consumer sentiment

The U.S.-listed shares of PDD Holdings Inc. (PDD) powered up 12.7% toward a five-month high in premarket trading Tuesday, after the China-based mobile marketplace company reported second-quarter results that beat expectations by a wide margin, as a "positive shift" in consumer sentiment led to a rise in demand. Net income for the quarter to June 30 rose to RMB13.11 billion ($1.81 billion), or RMB9.00 per American depositary share, from RMB8.90 billion, or RMB6.22 per ADS, in the year-ago period. Excluding nonrecurring items, adjusted earnings per ADS of RMB10.47 was above the FactSet consensus of RMB7.30. Revenue jumped 66.3% to RMB52.28 billion ($7.21 billion), above the FactSet consensus of RMB43.39 billion. "Over the recent quarter, we saw a positive shift in consumer sentiment, leading to a rise in demand across various product sectors," said Co-Chief Executive Jiazhen Zhao. The stock has rallied 13.1% over the past three months through Monday, while the iShares MSCI China ETF (MCHI) has slipped 0.1% and the S&P 500 has gained 5.4%.

-Tomi Kilgore

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08-29-23 0802ET

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