5 Stocks Garnering Attention After Releasing Their Earnings Reports

4. Pinduoduo Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 34

Shares of Pinduoduo Inc. (NASDAQ:PDD) rallied nearly 19 percent on Tuesday, March 22, 2022, after announcing better-than-expected financial results for the fourth quarter. The Shanghai-based agriculture-focused technology platform reported adjusted earnings of 92 cents per ADS, crushing expectations of 35 cents.

On the downside, the quarterly revenue of $4.27 billion fell slightly below the consensus of $4.76 billion. Pinduoduo Inc. (NASDAQ:PDD) also released its segment-wise sales performance. Its online marketing services and others revenue jumped 19 percent to $3.52 billion, while transaction services revenues skyrocketed 108 percent to $741.3 million in the quarter.

In comparison, revenue from merchandise sales plummeted 98 percent to $12.8 million. Among other updates, Pinduoduo Inc. (NASDAQ:PDD) reported that it ended the quarter with 868.7 million active buyers, compared to 788.4 million in the same period of 2020.

Commenting on the quarter, CEO Lei Chen said:

“In 2021, we made the strategic shift from sales and marketing toward research and development. We see ourselves making more long-term investment, especially in agriculture and R&D. Similar to the last two quarters, we will allocate profits from the fourth quarter to the 10 Billion Agriculture Initiative to deepen our digital inclusion efforts in agriculture.”