PDD is a strong buy after misunderstood earnings
PDD (Temu) shares have fallen over 30% after recent earnings implied they have missed their targets by a massive margin, and a cautious comment indicating there might be macro issues going ahead.
However, only revenue has missed targets - by only 3% - effectively meeting the markets sky-high expectations.
Looking at the actual releases, EPS is 2.97 in Q2 2024, which actually beat the expectation. The company is still experiencing massive growth - even while, as outlined in the meeting notes around supply chain streamlining, they have simply had some short term costs in this regard.
A 30% drop in share price is an extreme overreaction and I expect a quick and violent retrace once the market has cleared its head.
"Buy when there is blood on the streets" - especially without reason.
Disclaimer: This idea is not intended as investment advice and should not be interpreted as an offer to sell or a recommendation to purchase any asset. Any decisions made based on the information presented in this idea are the sole responsibility of the individual. All investment decisions should be made independently, taking into account your financial situation and objectives.
However, only revenue has missed targets - by only 3% - effectively meeting the markets sky-high expectations.
Looking at the actual releases, EPS is 2.97 in Q2 2024, which actually beat the expectation. The company is still experiencing massive growth - even while, as outlined in the meeting notes around supply chain streamlining, they have simply had some short term costs in this regard.
A 30% drop in share price is an extreme overreaction and I expect a quick and violent retrace once the market has cleared its head.
"Buy when there is blood on the streets" - especially without reason.
Disclaimer: This idea is not intended as investment advice and should not be interpreted as an offer to sell or a recommendation to purchase any asset. Any decisions made based on the information presented in this idea are the sole responsibility of the individual. All investment decisions should be made independently, taking into account your financial situation and objectives.
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