PDD Holdings ( PDD ) shares are trading lower Friday after the company reported fourth-quarter earnings that missed revenue expectations.

What To Know: PDD reported revenue of $15.15 billion for the quarter, a 24% year-over-year increase but below the analyst estimate of $15.68 billion. Revenue from online marketing services rose 17% to $7.81 billion, while transaction services revenue increased 33% to $7.34 billion.

Adjusted operating profit grew 14% to $3.84 billion. The company reported adjusted earnings per ADS of $2.76, surpassing the consensus estimate of $2.56.

Despite earnings beating expectations, the revenue miss has weighed on investor sentiment. Lei Chen, Chairman and Co-CEO, stated that PDD remains committed to its high-quality development strategy to support the broader e-commerce ecosystem.

Following the earnings release, US Tiger Securities downgraded PDD from Buy to Hold and Jefferies cut its price target from $171 to $156.

PDD Price Action: PDD shares were down 2.64% at $127.50 at the time of writing, according to Benzinga Pro.

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