Investors who glanced at Monday’s most actively traded stocks may dismiss the penny stocks. Tonix Pharmaceuticals (TNXP) and Mullen Automotive (MULN) are examples of penny stocks to ignore.
PDD Holdings (PDD) is the stock to watch today. PDD stock lost 28.51% to close at exactly $100.00. The Chinese e-commerce retailer, which runs Temu, reported revenue growing by 86% Y/Y to $13.36 billion. However, its revenue missed consensus estimates by over $600 million. In addition, its Finance Chief, Jun Liu, said that revenue growth will face pressure due to intensified competition and external challenges.
The Finance boss cited new challenges that included changing consumer demand, intensifying competition, and uncertainties in the global environment. In addition, customers have more diverse preferences. This will increase the cost of doing business related to growing consumer loyalty. PDD collaborated with high-quality brands. Expect the company to spend more on marketing, hurting profitability.
In the electric vehicle market, Tesla (TSLA) risks pulling back to $200. Canada announced a 100% tariff against Chinese EV imports. This would include Tesla vehicles made in China.
Those developments benefit Lucid Group (LCID), whose manufacturing is not in China. LCID stock rallied from around $300 in mid-August to close at $4.26.