PDD Stock Recent News

I reiterate my buy rating on PDD, despite recent underperformance and a challenging Q1, due to its low valuation and strong free cash flow yield. PDD faces headwinds from tariffs, the loss of the de minimis exemption, and increased competition, but profitability remains robust and EPS growth is expected in 2026. Valuation remains attractive: even with reduced EPS estimates, PDD trades at a low multiple, making it cheap relative to peers and its own fundamentals.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Recently, Zacks.com users have been paying close attention to PDD Holdings Inc. Sponsored ADR (PDD). This makes it worthwhile to examine what the stock has in store.

PDD Holding's Q1 2025 results missed revenue and profit expectations for the third consecutive quarter, raising concerns about growth sustainability and international strategy. Despite revenue headwinds, GMV and user engagement remain strong, driven by aggressive subsidies and pragmatic AI investments focused on efficiency and platform stickiness. Heavy marketing spends and a shift to an ecosystem-first strategy support long-term merchant and user health, but near-term profitability and global expansion face significant risks.

A delisting push is adding to the unraveling of Wall Street's love affair with China Inc.

The PDD Holdings stock price remains in a bear market after falling by over 23% from its highest point since March this year. It was trading at $102.25 on Friday, also down by 37% from the highest level in 2024.

Today's financial markets are less welcoming to new capital than they used to be, as every week of 2025 has delivered wave after wave of uncertainty for investors. In the first quarter, both participants and the economy as a whole had to contend with the implications of Liberation Day in April 2025, when President Trump introduced new trade tariffs to be implemented with most of the United States' trading partners.

Chinese e-commerce giants Alibaba Group Holding Ltd. BABA and PDD Holdings, Inc. PDD saw their shares rise on Monday after China reported a stronger-than-expected jump in retail sales.

Temu is a low-cost online marketplace that has had the temerity to achieve popularity with American buyers while also being Chinese. In response to Temu's achievements in the world's most competitive consumer market, Nebraska attorney general Mike Hilgers has filed a complaint that Temu installs “malware” of some kind that gives the company access to “sensitive information.

PDD Holdings Inc. Sponsored ADR (PDD) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.