Company did not provide specific guidance for the current quarter or full year
Overview
China commerce group's Q2 revenue grew 8% yr/yr, driven by transaction services
Adjusted net income for Q2 fell 13% yr/yr
Company increased ecosystem investments amid evolving global trade and regulatory challenges
Result Drivers
TRANSACTION SERVICES - Co said revenue growth was mainly driven by increased revenues from transaction services
ECOSYSTEM INVESTMENTS - Co stepped up ecosystem investments in Q2, prioritizing merchant support and industry ecosystem strengthening, per VP of Finance Jun Liu
HIGHER OPERATING EXPENSES - Operating expenses rose 13% yr/yr, mainly due to increased sales and marketing costs
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for PDD Holdings Inc. is $118.04, about 33.6% above its August 21 closing price of $88.38
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
PDD•
