PDD stock jumped in early Wednesday trading, after Chinese e-commerce company PDD Holdings (PDD) reported first-quarter results that exceeded expectations. Sales for the Temu parent company jumped 131%.

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PDD Holdings said early Wednesday that it earned an adjusted 20.72 Chinese yuan ($2.83) per share from sales of $86.8 billion yuan ($12 billion) for the March-ending quarter. On average, analysts projected the Temu parent company would post adjusted earnings of 10.49 yuan per share on sales of 75.9 billion yuan, according to FactSet.

For the same period a year earlier, PDD Holdings posted adjusted earnings of 6.92 yuan per share on sales of 37.6 billion yuan.

On the stock market today, U.S.-listed PDD stock is up 7.6% at 156.48 in recent premarket action, signaling a move out of a buy zone and to a three-year high.

PDD Holdings includes the China-focused e-commerce platform Pinduoduo and international discount retail platform Temu. PDD shares surged nearly 80% in 2023, as Temu expanded rapidly in the U.S. and elsewhere.

Last week, both Alibaba (BABA) and JD.com (JD) posted better-than-expected sales for their March quarters. The tech giants are PDD’s main competitors in China.

PDD Stock: Technical Ratings

Coming into its earnings report, PDD shares were trading roughly flat for 2024. PDD stock fell in the first months of the year amid concerns about consumer spending in China and regulatory concerns in the U.S. But shares have gained momentum of late, up 17% since mid-April. Over the past 12 months, PDD stock has advanced 140%.

PDD stock had recently broken past  a cup-with-handle base buy point of 142.32, according to MarketSurge. Shares closed Tuesday in buy range.

Coming into the report, PDD stock had a best-possible IBD Composite Rating of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.

Further, PDD’s IBD Relative Strength Rating was 95 out of 99.

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