Meta Platforms' stock reaches a record high as its advertising revenue thrives, with PDD, the parent company of e-commerce platform Temu, emerging as one of Meta's top advertisers by spending $2 billion on advertising across Meta's platforms. The robust ad sales have contributed to Meta's bullish sentiment in the stock market, while also benefiting other tech giants like Google, which are reliant on advertising revenue.
Chinese e-commerce giant Alibaba, led by cofounder Jack Ma, has been overtaken in market value by rival company PDD Holdings, the parent company of Temu. PDD's market cap reached nearly $185 billion, surpassing Alibaba's market cap of nearly $184 billion. This shift occurred a day after Ma praised PDD's strategic decisions. Alibaba has faced challenges in recent years, including Ma's criticism of Chinese regulators, a shelved IPO for Ant Group, an antitrust probe, and the decision to split into smaller entities. Alibaba's stock has declined significantly, while PDD's stock has seen a 70% increase this year.
Alibaba Group Holding Ltd., once China's most valuable e-commerce firm, is set to lose its top position to eight-year-old upstart PDD Holdings Inc. as its market value dips below PDD's. This shift reflects the turmoil Alibaba has faced since Beijing targeted the company and its co-founder, Jack Ma, in a crackdown on the tech sector. PDD's success can be attributed to its aggressive global expansion and the popularity of its hit shopping app, Temu. Alibaba, on the other hand, has struggled with internal and external challenges, including a weaker-than-expected Chinese economic recovery.
Stocks like Micron, Boeing, Acelyrin, PDD, ChargePoint, and Affirm are among the top movers in the stock market today, as Federal Reserve Gov. Christopher Waller's comments about slowing economic momentum contribute to optimism that the U.S. central bank has finished raising interest rates.
PDD stock experiences a significant surge after the online retailer surpasses Wall Street's expectations with its quarterly earnings report, showcasing impressive growth and positioning itself as a formidable competitor to Alibaba and Amazon.
