PDD Holdings (NASDAQ: PDD) stock jumped during pre-market trading Tuesday as Bernstein SocGen Group expressed bullish sentiments towards the company, raising its price target to $235.
Pinduoduo (PDD) has received a significant vote of confidence from Bernstein SocGen Group analyst Robin Zhu, who raised the stock’s price target to $235, up from the previous $180. The e-commerce behemoth maintains its Outperform rating following a stellar financial performance in the first quarter.
In Q1, Pinduoduo reported staggering revenue growth, reaching RMB86.8 billion, a remarkable 131% increase year-over-year. The non-GAAP operating profit was equally impressive, surging 237% to RMB28.6 billion. These figures surpassed analyst and consensus estimates by a considerable margin, with revenue beating expectations by approximately 7% and 13% respectively, and operating profit exceeding forecasts by 55% and nearly 80%.
A key driver of Pinduoduo’s success was its online marketing services revenue, which grew by 56% to RMB42.5 billion. However, the transaction services revenue was even more striking, skyrocketing by 327% compared to last year. This remarkable growth trajectory underscores the firm’s positive outlook on Pinduoduo’s stock.
Bernstein analyst Robin Zhu expressed surprise at the magnitude of Pinduoduo’s earnings beat, labeling it as one of the most significant he has witnessed, despite being a long-term bull on the company.
PDD Holdings (NASDAQ: PDD) Stock Movement
As of 05:00 a.m. (Eastern Time) Tuesday, PDD stock traded at $161.89, marking a 2.74% increase compared to the previous trading session.
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