PDD Holdings Inc. saw a rise in its stock value following the release of its quarterly earnings report, showing an 18% increase in earnings, which was higher than expected. Despite reporting slightly lower revenue figures for the December quarter compared to projections, the company's net income performed better, reaching 27.4 billion yuan.

Concerns regarding PDD's business, both internationally and domestically, have impacted market expectations. The company is dealing with challenges such as US tariffs on Chinese goods and potential changes in tax regulations, as well as intensifying competition in the market. PDD has cautioned about declining profitability due to increased competition since August.

There is hope that the positive earnings report will restore investors' confidence in the company's future earnings outlook, as PDD's stock is currently trading at a low multiple of projected 2025 earnings. Despite acknowledging the ongoing challenges from global uncertainties and competition, PDD executives reaffirmed their commitment to supporting merchants and enhancing customer satisfaction.

In comparison, competitors JD.com Inc. and Alibaba Group Holding Ltd. reported strong sales figures for the same quarter, benefiting from government policies aimed at stimulating consumer spending. The Chinese government's focus on boosting domestic demand is part of its strategy to counter the impact of US tariffs and achieve a targeted growth rate of approximately 5%.

While PDD's report was seen as lacking significant positive developments, analysts noted the company fell short on transaction service revenue and online marketing service revenue.