[Earnings Recap] XPeng Sinks 9%, PDD Slips1.48% — A Rough Day for China Growth Stocks
Monday’s earnings slate was relatively light, but several names still moved sharply. XPeng sold off after issuing a weak revenue outlook, while PDD finished lower as investors weighed slowing growth against stronger-than-expected profit.
$XPeng Inc.(XPEV)$ -8.6%
XPeng is a Chinese electric-vehicle maker that is also expanding into autonomous driving, AI and humanoid robotics.
Q2 revenue reached RMB19.74 billion, while vehicle deliveries totaled 103,295, roughly flat from a year earlier. Gross margin improved to 20.7%, but the company posted a net loss of RMB1.34 billion.
The bigger concern was guidance. XPeng expects Q3 revenue of RMB21.7 billion–RMB23.4 billion, well below the roughly RMB26.6 billion Wall Street expected. The company guided for 115,000–121,000 vehicle deliveries as price competition across China’s EV market remains intense.
Shares closed down about 8.6% Monday. A $900 million funding round for XPeng’s robotics unit, valuing the business at more than $6.3 billion, wasn’t enough to offset concerns about the core auto business.
$PDD Holdings Inc(PDD)$ -1.5%
PDD Holdings is the Chinese e-commerce company behind Pinduoduo and global discount-shopping platform Temu.
Q2 revenue rose 8% to RMB112.4 billion, below the roughly RMB116.4 billion analysts expected. Adjusted diluted EPS came in at RMB19.33, ahead of expectations, while net income fell 12% to RMB27.2 billion.
The quarter highlighted growing pressure from competition and higher spending. Operating expenses rose 13%, while Temu continues to face higher tariffs and tighter trade rules in the U.S. and Europe. Management warned that those changes could hurt fulfillment efficiency and overseas profitability.
PDD shares swung between gains and losses before finishing Monday down about 1.5%, as the earnings beat failed to erase concerns about slower revenue growth and Temu’s rising costs
Today’s discussion:
PDD is still growing, but profits are falling. After this earnings report, would you chase the stock or wait for a better entry? $PDD Holdings Inc(PDD)$ $XPeng Inc.(XPEV)$ $XPENG-W(09868)$
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- Investing Leon·08-25 17:18Both results show that improving margins or beating profit estimates is not enough when revenue growth and forward guidance continue to weaken.LikeReport