Pinduoduo

PDD

Market cap $165B

PDD Holdings remains the cost leader in China's ecommerce sector with high efficiency and a massive cash pile. Revenue growth and margins show signs of stabilizing, but the company faces mounting regulatory challenges in China and abroad. While hoarding excess cash, the management continues to resist calls for dividends and buybacks.

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.

PDD Holdings is the owner of Pinduoduo and Temu. The company's revenue growth is slowing, while at the same time profit margins are compressing.

An analyst downgraded his recommendation on the Chinese ecommerce company. He now feels it's a hold at the current price.

With EPS revisions likely to rise after their massive Q3 earnings beats, these Chinese tech stocks could certainly be poised for more upside.

PDD posts higher Q3 earnings and rising revenues, with both major segments growing despite a slight miss on overall sales estimates.

PDD Holdings Inc. ( PDD ) Q3 2025 Earnings Call November 18, 2025 7:30 AM EST Company Participants Lei Chen - General Counsel, Co-CEO & Chairman Jiazhen Zhao - Co-CEO & Executive Director Xin Yi Lim Conference Call Participants Joyce Ju - BofA Securities, Research Division Alicis a Yap - Citigroup Inc., Research Division Kenneth Fong - UBS Investment Bank, Research Division Presentation Operator Ladies and gentlemen, thank you for standing by, and welcome to the PDD Holdings, Inc. Third Quarter 2025 Earnings Conference Call [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today.

PDD Holdings Inc. reported a decent Q3 with 9% revenue growth and strong profitability, but the slowdown compared to its hyper-growth years is becoming very visible. The valuation looks cheap; it's also far below PDD's own historical multiples, reflecting the structural re-rating of Chinese stocks under current geopolitical tensions. I am concerned about Temu's global expansion, especially after recent pullbacks in promotions and shipping limits that strongly resemble the early collapse signs we saw with Wish.

The owner of the bargain-shopping app warned of volatility ahead as it navigates a challenging business environment.

PDD Holdings Inc. Sponsored ADR (PDD) came out with quarterly earnings of $2.96 per share, beating the Zacks Consensus Estimate of $2.21 per share. This compares to earnings of $2.65 per share a year ago.