On paper, PDD Holdings Inc. (NASDAQ: PDD) gave investors plenty to cheer in its Aug. 24 earnings report, comfortably beating expectations on earnings. Shares of the Chinese e-commerce giant duly popped at the open, yet by the closing bell, that early enthusiasm had evaporated and the stock slipped into the red, a telling sign that all isn't quite as rosy as the headline beat suggested. A modest rebound in Aug. 25 trading did little to dispel the doubts.
That muted response speaks volumes about the questions still hanging over the owner of budget shopping apps Pinduoduo and Temu. The shares remain down almost 25% for the year, and the failure to hold on to that post-earnings pop puts a nascent recovery, one that has seen the stock climb around 20% since late June, at risk of stalling.
