Temu Parent Reports Earnings: What to Know

Group 1 - PDD Holdings Inc reported lower-than-expected fourth-quarter earnings and revenue, impacted by strong competition and weak demand in China, but still managed to double its annual profit to $15.4 billion [1] - The stock price of PDD increased by 2$128.48, recovering from earlier losses despite a price-target cut from Jefferies from $171 to$156 [2] - Year-to-date, PDD's equity has outperformed the broader market with a 32.5% lead [2] Group 2 - In the options market, PDD has seen a significant increase in trading volume with 57,000 calls and 40,000 puts exchanged, which is four times the typical volume [3] - The most popular options are the March 135 and 130 call contracts, with new positions opening at the weekly 4/25 128-strike put [3] - PDD has consistently outperformed options traders' volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) of 97 out of 100 [3]