Latest news with #PDDHoldings
Yahoo
2 days ago
- Business
- Yahoo
PDD Holdings Inc. (PDD): A Bull Case Theory
We came across a bullish thesis on PDD Holdings Inc. (PDD) on LongYield's Substack. In this article, we will summarize the bulls' thesis on PDD. PDD Holdings Inc. (PDD)'s share was trading at $97.88 as of 28th May. PDD's trailing and forward P/E were 10.53 and 7.76 respectively according to Yahoo Finance. Pixabay/Public domain PDD Holdings Inc., the parent company of Pinduoduo and Temu, delivered strong top-line growth in Q1 2025, with revenue rising 10% year-over-year to RMB 95.7 billion (US$13.184 billion), driven by robust performance in online marketing and transaction services. While near-term profitability declined—operating profit fell 38% and net income dropped 47%—these figures reflect PDD's deliberate and strategic reinvestment into its ecosystem. The company significantly ramped up spending in sales and marketing (+43%) and R&D (+23%) to strengthen its merchant base, upgrade supply chains, and support long-term competitiveness. This aggressive reinvestment positions PDD for sustained value creation, especially as consumer behavior increasingly favors affordable, high-quality offerings—PDD's core strength. With a powerful balance sheet, including RMB 364.5 billion (US$50.3 billion) in cash and short-term investments and no significant debt, the company is well-capitalized to weather macro uncertainties and accelerate its global expansion through Temu. The international platform continues to gain traction and, with careful navigation of geopolitical risks, could become a major growth engine. PDD's unique value-for-money positioning, group-buying model, and focus on underserved SMEs differentiate it from peers like Alibaba and Strategic initiatives such as a RMB 100 billion merchant support program, supply chain investments, and consumer incentives reinforce its ecosystem advantage. Though short-term margins are compressed, the long-term outlook remains compelling. With unmatched financial flexibility, rising global brand awareness, and a focus on sustainable growth, PDD is well-positioned to emerge as a dominant global e-commerce player over the next decade. Previously, we have covered PDD Holdings Inc. (PDD) in February 2025, wherein we summarized a bullish thesis by Favona Hathaway on Substack. The company was highlighted for its rapid growth, strong financials, and dominant position in value-for-money e-commerce through its C2M model and global expansion via Temu. The article noted PDD's impressive revenue and profit CAGR since 2021, minimal debt, and potential for a 144% market cap upside by 2029, despite geopolitical and macroeconomic risks. Since our last coverage, the stock is down 21% as of 28th May. PDD Holdings Inc. (PDD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held PDD at the end of the first quarter which was 85 in the previous quarter. While we acknowledge the risk and potential of PDD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PDD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Hedge Funds Tout Japanese Tires, Hungarian Drugs at Sohn HK
Hedge funds pitched investment ideas ranging from a Japanese tiremaker to a Hungarian pharmaceutical company at the Sohn Hong Kong Investment Leaders Conference on Friday. Chinese e-commerce firm PDD Holdings Inc. was another pick at the annual gathering, which is taking place in the city in support of the Karen Leung Foundation.
Yahoo
3 days ago
- Business
- Yahoo
BofA Cuts PDD Holdings (PDD) Target to $120, Maintains Hold
On May 28, PDD Holdings (NASDAQ:PDD) reported weaker quarterly results, prompting Bank of America Securities analyst Joyce Ju to lower her price target to $120 from $140 and reiterate a "Hold" rating on the shares. Ju was disappointed with a slowdown in transaction revenue growth in Q1 2025, as well as a decline in adjusted net profits. The company stated that it had made substantial investments in its platform ecosystem, which negatively impacted its short-term profitability. A close-up of a customer using the company's e-commerce platform whilst shopping online. The company's adjusted operating profit decreased by 36% year-over-year, while its net profit declined by 45%. The contributing reasons for this weaker performance included a cut in merchant fees, lower benefits from trade-in subsidies, and the impact of trade policies on the U.S., its largest market. The analyst noted that the earnings from the domestic marketplace declined despite solid growth. Adding to its challenges, the Temu online marketplace business also continued to report losses. Ju believes the situation should improve in the coming quarters as some of these trends begin to reverse. However, she expects earnings for the next few years to remain pressured by the recent investments and changes to its various programs. As a result, she maintained his cautious stance. PDD Holdings is a multinational commerce group that owns and operates a portfolio of digital marketplaces businesses, including Pinduoduo and Temu. While we acknowledge the potential of PDD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hindustan Times
4 days ago
- Entertainment
- Hindustan Times
China's Temu sends stickers to Indian mom who thought she ordered home essentials
A desi mum who thought she'd scored a great deal on home essentials was left equal parts shocked and amused when Temu delivered stickers of the items she'd ordered — instead of the actual products. Dubai-based Indian-origin woman Suchita Ojha shared an Instagram video of her mother's hilarious mix-up, which has left thousands of people in splits. Ojha said her mother is 'obsessed with Temu' - the online marketplace launched by PDD Holdings, the parent company of China's Pinduoduo. Temu connects consumers directly with manufacturers and wholesalers, primarily based in China, allowing them to buy goods at a discount. Sometimes, however, the discounts can lead to confusion - as Ojha's mother discovered when she ordered what she thought was a vacuum cleaner and cooking utensils at a great price. She missed the product description which explained that Temu is selling stickers of the products, not the products themselves. Ojha's video captures the hilarity that ensued when she opened her packages and realised that she'd received stickers. A post shared by Suchita Ojha (@suchiojha) 'Context: She didn't even read that it was stickers, she just saw the picture and ordered randomly,' the Dubai-based woman wrote on Instagram, explaining that her mother did not read the product description. When reached out to Temu for a response, the company said: 'We always encourage users to read product descriptions and reviews carefully so their purchases match what they're looking for. Mixups like this happen, and we hope the user gives Temu another try!' The Instagram Reel has gone viral with over 2.2 million views and a ton of comments. Viewers on Instagram were also much amused by the mix-up. 'The description literally says stickers. But this is so funny,' read one comment under the video. 'Didn't know we could get trauma from Temu,' another person joked. 'AED 5!? itna paisa mein itna hi milega,' a third quipped.
Yahoo
4 days ago
- Business
- Yahoo
PDD Holdings (NasdaqGS:PDD) Reports Q1 Sales Growth But Decline In Net Income
PDD Holdings recently reported significant sales growth for the first quarter of 2025, reaching CNY 95,672 million, compared to the previous year's CNY 86,812 million. Despite this increase, the company's net income and earnings per share both fell, potentially influencing the flat share price movement observed over the past month. With major indices such as the S&P 500 and the Dow Jones showing little change during the same period, PDD Holdings' financial results may have contributed to the subdued performance without significantly deviating from broader market trends. Buy, Hold or Sell PDD Holdings? View our complete analysis and fair value estimate and you decide. Find companies with promising cash flow potential yet trading below their fair value. The recent increase in PDD Holdings' sales yet decline in net income highlights a complex scenario for investor sentiment. While the sales growth to CNY 95,672 million marks a positive development, the dip in earnings and flat share price could indicate market apprehension regarding profit sustainability. Over a longer frame, PDD Holdings achieved a total return of 104.53% over three years, illustrating a favorable trajectory when compared to the recent flat share price movements. However, within the past year, PDD Holdings has underperformed the broader US market, which returned 11.3%, and the US Multiline Retail industry, which returned 12.5%. The supply chain investments and ecosystem enhancement strategies may lead to improved operational efficiencies and potential future revenue growth, consequently influencing long-term forecasts. Analysts project a 16.6% annual revenue growth over the next three years, acknowledging short-term strain on margins due to aggressive merchant support programs. Coupled with the anticipated earnings growth, this sets a foundation for the analysts' consensus target price of US$150.04, as the company's current share price of US$104.15 represents a near 30% discount to this target. The market seems to await tangible, positive outcomes from PDD Holdings' investments before fully pricing in these expectations. Upon reviewing our latest valuation report, PDD Holdings' share price might be too pessimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:PDD. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
