U.S.-listed PDD stock jumped in early Wednesday trading after Temu parent company PDD Holdings (PDD) reported fourth-quarter earnings that easily topped expectations.

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For the three months ending Dec. 31, PDD Holdings said it earned an an adjusted 15.83 Chinese yuan ($2.23) per share on sales of 88.88 billion yuan ($12.52 billion). On average, analysts were expecting PDD to post earnings of $1.57 per share and sales of $11.05 billion, according to FactSet.

Adjusted earnings per share increased 107% in local currency while revenue increased 123% in local currency.

On the stock market today, PDD stock is up more than 16% at 148.98 in premarket trading.

PDD Holdings includes the China-focused e-commerce platform Pinduoduo and international discount retail platform Temu. U.S.-listed PDD shares surged nearly 80% in 2023 but are off 12% since the start of the year.

PDD Stock: Temu Expansion

PDD Holdings Co-Chief Executive Jiazhen Zhao said in a news release that the company saw “growing demand driven by encouraging consumer sentiment” in the fourth quarter.

In China, Pinduoduo has challenged incumbents such as Alibaba (BABA) and JD.com (JD) by offering discounted items at a time consumer spending has been sluggish. Both Alibaba and JD said on recent earnings calls that they are now focused on offering discounted sales.

Meanwhile, PDD launched Temu across several countries late in 2022. It has grown rapidly to be seen as a smaller challenger to Amazon (AMZN) for U.S. e-commerce sales. Its growth has been helped by a marketing push that has included Super Bowl ads and big-spending on Facebook and Instagram, owned by Meta Platforms (META).

PDD Holdings does not break out separate results for its Temu subsidiary. Overall revenue for PDD Holdings jumped 90% in local currency for its fiscal year 2023, to 247.64 billion yuan ($34.88 billion).

Further, MarketSurge shows PDD stock has formed a double-bottom base with a buy point of 139.06.

IBD Stock Checkup places PDD as the second best-performing stock in the retail-internet group, trailing only Amazon. PDD stock has an IBD Composite rating of 98 out of a best-possible 99. The score means PDD stock currently tops 98% of all other stocks in terms of key performance metrics and technical strength.

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