(Bloomberg)-PDD Holdings Inc. They climbed after the owner of the theme reported on an increase in 18% of 18%, pointing to investors’ concern about the business of sensitive to US tariffs and intensifying domestic competition.
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The shares in New York received 4%, although the e-commerce company reported the revenue from the lower than the expected 110.6 billion Juan ($ 15.3 billion) for a quarter in December. The net income climbed to the expected 27.4 billion Yuan.
The results of PDD come at a time of increased uncertainty about his business both at the country and abroad, which helped reduce expectations. The topic is struggling with elevated US tariffs on Chinese products and the potential closure of a low -value tax hole. Homemade, PDD warned of competition from August and predicted that his profitability would trend over time.
“Reactions should help back to the market back to the market in their appearances for the earnings of 2025,” said Morgan Stanley analysts, adding that the shares traded in just 11 times the projected earnings from 2025. “Because of the tariff coverage of the topic and competition in the EC, market expectations for the year are not high.”
However, on Thursday, the managers acknowledged the challenges of growing global insecurity and said that intense competition also influenced short -term growth. They repeated their support to the merchants and efforts to increase the consumer experience.
“As mentioned in the previous quarters, our significant investment in the ecosystem, together with the rapidly variable external environment and intensified landscape of competition, will affect the short -term finances,” said co -president co -president Chen Lei analysts at the invitation.
On the contrary, JD.com Inc. and Alibaba Group Holding Ltd. They reported better sales than designed for December, when Beijing increased policies such as subsidies and incentives to increase consumption. The government has prioritized domestic demand because the country seeks to compensate for the impact of US President Donald Trump’s tariff and achieve a growth goal of about 5%.
The report on Thursday “Missing any Greater Light point”, JP Morgan analysts Andre Chang and Alex Yao wrote in a note, who also missed revenue from transaction services and revenue from network marketing services.
