Latest news with #BoPei
Yahoo
3 days ago
- Business
- Yahoo
Circle's Q2 Pop Fizzles as Price Target Gets Cut
Circle Internet Group (NYSE:CRCL) had its big earnings debut since going public in June, and on paper, the numbers looked impressive. Revenue for the second quarter jumped 53%, fueled by a 90% year-over-year surge in USDC circulation to $61.3 billion. But despite that strong top-line growth, the stock fell almost 6% after-hours on August 12. The drop came after Circle revealed it plans to sell 10 million new shares, which raised concerns about dilution. Warning! GuruFocus has detected 5 Warning Sign with CRCL. US Tiger Securities analyst Bo Pei isn't ready to turn bullish just yet. He trimmed his price target from $200 to $180, pointing out that while Circle is in a strong position in the regulated stablecoin market and has its new Arc blockchain product on the way, several red flags remain. Profit margins are under pressure and may tighten further in the second half of the year. Operating costs are climbing faster than expected. And with 96% of revenue still coming from interest-sensitive reserves, a cut in Federal Reserve rates could take a bite out of income. On top of that, the valuation is steep, trading at more than 60 times projected 2026 EBITDA. Investors are betting heavily on Circle's growth story, but without a crypto market rebound or better industry conditions, that bet might feel expensive. For now, the stock's future seems to hinge on whether the momentum in digital assets can keep up with the lofty expectations. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
28-05-2025
- Business
- Business Times
Temu-owner PDD Holdings profit dives as it faces challenges at home and abroad
[SHANGHAI] Chinese e-commerce firm PDD Holdings saw first-quarter net profit fall 47 per cent to 14.7 billion yuan (S$2.6 billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. US-listed shares of the company fell more than 17 per cent. '[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by US tariffs,' said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. 'Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth,' said US Tiger Securities analyst Bo Pei. 'Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up China's largest online e-commerce platforms – Alibaba, Pinduoduo and – have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the US and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. 'Radical change in external policy environments such as tariffs has created significant pressure for our merchants,' PDD chairman and co-CEO Chen Lei told analysts in a post-earnings call. The US earlier this month slashed tariff rates for goods from China valued at under US$800 entering the country under the 'de minimis' provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. 'Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve,' Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.7 billion yuan for the quarter ended Mar 31, compared with analysts' average estimate of 102.5 billion yuan, according to data compiled by LSEG. REUTERS
New Straits Times
28-05-2025
- Business
- New Straits Times
Temu-owner PDD Holdings profit dives as it faces challenges at home and abroa
KUALA LUMPUR: Chinese e-commerce firm PDD Holdings saw first-quarter net profit fall 47 per cent to 14.74 billion yuan (US$2.05 billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. US-listed shares of the company fell more than 17 per cent. "[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by US tariffs," said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. "Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth," said US Tiger Securities analyst Bo Pei. "Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability." China's largest online e-commerce platforms - Alibaba , Pinduoduo and - have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the US and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. "Radical change in external policy environments such as tariffs has created significant pressure for our merchants," PDD chairman and co-ceo Chen Lei told analysts in a post-earnings call. The US earlier this month slashed tariff rates for goods from China valued at under $800 entering the country under the "de minimis" provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. "Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve," Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.67 billion yuan (US$13.30 billion) for the quarter ended March 31, compared with analysts' average estimate of 102.51 billion yuan, according to data compiled by LSEG.
Yahoo
27-05-2025
- Business
- Yahoo
Temu parent sees stock plummet after earnings miss
Temu's parent company, PDD Holding, saw shares fall about17% on Tuesday morning after reporting a major first-quarter earnings miss. The Chinese e-commerce giant reported that its first-quarter net profit plummeted 47% as it grapples with a trade war and domestic competition. Mscience analyst Vinci Zhang told Reuters the 'massive bottom line miss is due to much weaker than expected operating margin, likely impacted by U.S. tariffs.' PDD Holdings (PDD) did report a 10% year-over-year increase in total revenues for the first quarter of 2025, reaching RMB95.67 billion (US$13.18 billion), primarily from gains in online marketing and transaction services. But the company's operating profit dropped 38% to RMB16.09 billion (US$2.22 billion). Non-GAAP operating profit also declined 36% year-over-year to RMB18.26 billion (US$2.52 billion). U.S. Tiger Securities analyst Bo Pei told Reuters that 'slower domestic consumption, intensified competition, and global trade frictions are weighing on growth.' Temu was set to be one of the companies most affect by Trump's trade war with China since its products were subject to hefty tariffs. The planned closure of the de minimis loophole will no longer allow shipments under $800 to come into the country without facing levies. While many of those tariffs have been deescalated or paused, PDD is still feeling the hurt. '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,' Jun Liu, VP of Finance of PDD Holdings, said in a press release. 'Our financial results may continue to reflect the impact of sustained investments in the ecosystem as we support merchants and consumers through uncertain times.' For the latest news, Facebook, Twitter and Instagram.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Temu-owner PDD Holdings profit falls 47% as it faces challenges at home and abroad
Chinese e-commerce firm PDD Holdings Inc. PDD-Q saw first-quarter net profit fall 47 per cent to 14.74 billion yuan (US$2.05-billion) as its domestic platform suffered from intense local competition and its international business was hit by global trade uncertainty. U.S.-listed shares of the company fell more than 19 per cent in premarket trading. '[PDD's] massive bottom line miss is due to much weaker than expected operating margin, likely impacted by U.S. tariffs,' said Mscience analyst Vinci Zhang. Despite deep price cuts by retailers and government stimulus measures to boost spending, a prolonged property crisis in the world's second-largest economy has cast a shadow over consumer spending in China, even on PDD's Pinduoduo, which has out-performed peers with its low-price focus. 'Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth,' said U.S. Tiger Securities analyst Bo Pei. 'Elevated costs reflect strategic promotional activities and advertising spend to support merchant sales, it's aimed at supporting the platform's long-term ecosystem health but sacrifices near-term profitability.' The Decibel: How Canadian businesses are getting caught up in U.S. tariffs on China Online marketplace Temu allowing Canadian businesses to sell through platform China's largest online e-commerce platforms - Alibaba BABA-N, Pinduoduo and - have been scrambling for a greater share of the domestic market, sparking a long-running price war to entice consumers to open their wallets. Alibaba's quarterly revenue also missed estimates, although notched a beat, buoyed by a government trade-in scheme focused on its strongest categories, including home appliances and electronics. Meanwhile, a tit-for-tat tariff escalation between the U.S. and China, followed by a temporary 90-day de-escalation, has generated widespread uncertainty for global business Temu. 'Radical change in external policy environments such as tariffs has created significant pressure for our merchants,' PDD chairman and co-ceo Chen Lei told analysts in a post-earnings call. The U.S. earlier this month slashed tariff rates for goods from China valued at under $800 entering the country under the 'de minimis' provision, a trade exemption leveraged by Temu to avoid tariffs and keep prices low. 'Our global business is working with merchants across regions to bring stable prices and abundant supply to strengthen our operations in the markets we serve,' Chen said, reiterating Temu's desire not to raise prices in the face of tariffs and its strategic shift to seeing more orders fulfilled by local merchants. PDD reported revenue of 95.67 billion yuan (US$13.3-billion) for the quarter ended March 31, compared with analysts' average estimate of 102.51 billion yuan, according to data compiled by LSEG.
