1 Growth Stock Down 60% to Buy Right Now
Pinduoduo's (NASDAQ: PDD) stock price plunged 14% on March 20 after it posted its fourth-quarter earnings report. The Chinese e-commerce company's revenue rose 46% year over year to 39.82 billion yuan ($5.77 billion), but that missed analysts' estimates by $140 million. Its adjusted earnings per ADS increased 42% to 8.34 yuan ($1.21) per share, which also missed the consensus forecast by $0.03.
For the full year, Pinduoduo's revenue grew 39% to 130.56 billion yuan ($18.93 billion) -- decelerating from its 58% growth in 2021 -- but its adjusted earnings per ADS nearly tripled to 27.45 yuan ($3.98) per share. Those growth rates look impressive, yet Pinduoduo still trades more than 60% below its all-time high from February 2021. Let's see why Pinduoduo's stock tumbled -- and why I believe it's still a great growth stock for investors who can tune out the near-term noise.
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Source Fool.com
