Why PDD Holdings Inc. (PDD) Went Down On Tuesday

We recently published a list of 10 Stocks Got Wiped Out. Are You Holding Any? In this article, we are going to take a look at where PDD Holdings Inc. (NASDAQ:PDD) stands against other worst-performing stocks.

PDD Holdings nosedived for a second day on Tuesday, losing 13.64 percent to finish at $102.98 apiece following a dismal earnings performance in the first quarter of the year, dented by the ongoing global trade war.

In a statement, PDD Holdings Inc. (NASDAQ:PDD) said net income attributable to shareholders declined by 47 percent to 14.74 billion yuan from the 27.99 billion yuan registered in the same period last year.

Total revenues, on the other hand, increased by 10 percent to 95.67 billion yuan from 86.8 billion yuan in the same comparable period.

“As communicated previously, a slowdown in growth rate is expected as our business scales and challenges emerge. This trend has been further accelerated by the changes in the external environment in the first quarter,” said PDD Holdings Inc. (NASDAQ:PDD) Vice President for Finance Jun Liu.

Why PDD Holdings Inc. (PDD) Went Down On Tuesday

A close-up of a customer using the company’s e-commerce platform whilst shopping online.

“Our financial results may continue to reflect the impact of sustained investments in the ecosystem as we support merchants and consumers through uncertain times,” she added.

PDD Holdings Inc. (NASDAQ:PDD) is the operator of the e-commerce platform Temu.

Overall, PDD ranks 1st on our list of worst-performing stocks. While we acknowledge the potential of PDD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has 10,000x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.