PDD Stock Heads for Worst Day Ever

The Temu parent released disappointing second-quarter results

Laura McCandless

Deputy Editor

Aug 26, 2024 at 10:44 AM

PDD Holdings Inc (NASDAQ:PDD) stock is headed for its largest daily percentage drop ever, down 27.2% at $101.75 at last glance, after the China-based e-commerce name announced disappointing second-quarter results and warned of a revenue slowdown.

Gapping to its lowest levels since November, the stock is down roughly 30% since the start of the year. Plus, PDD just moved below its 320-day moving average for the first time since May 2023.

Options traders are blasting the Temu parent in response. So far, 133,000 calls and 155,000 puts have crossed the tape, which is 4.3 times the overall average daily options volume already. The weekly 8/30 95-strike put is the most popular, with new positions being bought to open there.

This bearish-leaning sentiment represents a shift in the options pits, per PDD's 50-day call/put volume ratio of 3.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 91% of readings from the past year, meaning calls were picked up at a much faster-than-usual rate over the last 10 weeks.

Follow @Schaeffers

Are You Ready for AI's Potential Supercycle Phase?
Amazon's Jeff Bezos surprised investors when he revealed that one emerging technology is the key to Amazon's future success... This technology could be worth $80 trillion by 2030. Learn more and join Motley Fool's Stock Advisor for 50% off!

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.