PDD Margins Fall On Strategic Spending — Analyst Sees Long-Term Upside, But Payoff Timing Unclear
1. PDD missed Q1 revenue estimates, reporting $13.18 billion vs. $14.17 billion expected. 2. Adjusted operating margin fell dramatically from 32.9% to 19.1% year-over-year. 3. Analysts downgraded price targets, with PDD's from $160 to $128. 4. Challenges include rising merchant costs and ongoing tariff tensions affecting growth. 5. Analyst predicts mid-teen earnings growth potential if conditions normalize.