PDD Holdings (PDD), the parent company of China-focused e-commerce platform Pinduoduo and international discount retail platform Temu, experienced a significant surge in stock price on Tuesday following the release of its impressive third-quarter earnings report. The company outperformed Wall Street estimates, reporting adjusted earnings of RMB 11.61 ($1.64) per share on sales of RMB 68.8 billion ($9.7 billion) for the quarter ending in September.

Analysts had anticipated adjusted earnings of $1.25 per share on $7.7 billion in sales, making PDD's earnings significantly higher than forecasted. Sales increased by an impressive 94% in local currency compared to the previous year, and earnings showed a 35% year-over-year increase.

PDD's success can be attributed to its subsidiary companies as well. Temu, the discount-focused shopping platform, has gained popularity and is being viewed as a potential challenger to Amazon in the United States. PDD is also in competition with Alibaba in China and internationally with fast-fashion online retailer Shein, which recently filed to go public in the United States.

To boost the market share for Temu, PDD has heavily invested in advertising, resulting in increased operating expenses. Total operating expenses for the quarter reached $3.5 billion, representing a 44% increase in local currency, primarily driven by sales and marketing expenses.

The remarkable performance in the third quarter has further strengthened PDD's stock. According to IBD Stock Checkup, PDD is ranked as the third-best performing stock in the retail-internet group, trailing only Latin American e-commerce firm MercadoLibre and auction services company Liquidity Services. PDD's IBD Composite rating of 98 out of a possible 99 indicates that the stock currently outperforms 98% of all other stocks in terms of key performance metrics and technical strength.

Investors have shown their confidence in PDD's potential, with PDD stock gaining 18% to reach 139 on the stock market. With PDD Holdings' strong performance and the continued growth of its subsidiaries, the company seems well-positioned for further success in the e-commerce industry.

(Note: The generated article provides a summary based on the information given, but it does not include any opinions or additional analysis.)