Chinese Retail Giant PDD Plummets Nearly 30% After Disappointing Earnings: Which ETFs Are Most Impacted?
Portfolio Pulse from Piero Cingari
PDD Holdings Inc. (NASDAQ:PDD) saw its ADRs plummet nearly 30% after disappointing Q2 earnings and a pessimistic revenue forecast. Despite an 86% revenue increase, results fell short of expectations, leading to a sell-off. ETFs with significant PDD exposure, such as ProShares Online Retail ETF (ONLN) and Global X MSCI China Consumer Discretionary ETF (CHIQ), also suffered declines.
August 26, 2024 | 7:12 pm
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NEGATIVE IMPACT
Global X MSCI China Consumer Discretionary ETF, with 10.23% exposure to PDD, fell 4.3% after PDD's disappointing earnings.
CHIQ's exposure to PDD means its performance is affected by PDD's stock movements. The earnings miss led to a decline in CHIQ's value.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
ProShares Long Online/Short Stores ETF, with 9.87% exposure to PDD, fell 4.6% due to PDD's stock decline.
CLIX's exposure to PDD resulted in a negative impact on its performance following PDD's earnings miss and stock price drop.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Invesco China Technology ETF, with 9.32% exposure to PDD, fell 3.5% after PDD's earnings report.
CQQQ's exposure to PDD means its performance is affected by PDD's stock movements. The earnings miss led to a decline in CQQQ's value.
CONFIDENCE 80
IMPORTANCE 55
RELEVANCE 65
NEGATIVE IMPACT
KraneShares CSI China Internet ETF, with 9.05% exposure to PDD, fell 3.22% following PDD's disappointing earnings.
KWEB's exposure to PDD resulted in a negative impact on its performance following PDD's earnings miss and stock price drop.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
ProShares Online Retail ETF, with 11.27% exposure to PDD, fell 4.6% following PDD's earnings miss and stock decline.
ONLN has significant exposure to PDD, and the sharp decline in PDD's stock price directly impacted the ETF's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
PDD Holdings' ADRs fell nearly 30% due to disappointing Q2 earnings and a pessimistic revenue forecast. Despite an 86% revenue increase, results missed expectations, leading to a significant sell-off.
The sharp decline in PDD's stock price is directly linked to its earnings report, which failed to meet market expectations. The company's revenue growth, while substantial, was below analyst forecasts, leading to a loss of investor confidence.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100