BABA - PDD leads Chinese tech stocks higher after Q1 results top estimates

2023-05-26 12:45:07 ET

PDD Holdings ( NASDAQ: PDD ) led Chinese tech stocks higher on Friday after the e-commerce giant posted strong first-quarter results, aided by its online marketing services segment.

PDD surged 17% after it said it generated an adjusted $1.01 per share in earnings as revenue rose 58% year-over-year to $5.48B, including $3.96B from online marketing services.

Revenue related to transaction services was $1.51B during the quarter, up 86% year-over-year.

Analysts were expecting adjusted earnings of 63 cents per share and $4.56B in total revenue.

"We are entering a new phase of development where we are fully committed to fostering high-quality growth and further strengthening our ecosystem," said Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings, in a statement.

The company's VP of Finance, Jun Liu, added that the company is still in the investment stage and that the company is going to "step up" investment to support growth.

Following PDD's results, other Chinese tech stocks rose on Friday, including Baidu ( NASDAQ: BIDU ), which gained more than 5% after the company's CEO said it would launch the next large language model "very soon."

Other Chinese tech stocks also gained, including Alibaba ( BABA ), Bilibili ( BILI ), Tencent ( OTCPK:TCEHY ) and NetEase ( NTES ).

Conversely, smaller Chinese tech stocks such as Kingsoft Cloud Holdings ( KC ) and Weibo ( WB ) were lower on the session.

More on Chinese tech stocks

• PDD Holdings Has Entered Bargain Hunting Territory
• Baidu: Crushes Earnings - Strong Buy Now
• Alibaba: Like Amazon, But Better

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