PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed the most recent trading day at $84.83, moving -1.42% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Prior to today's trading, shares of the company had gained 10.16% outpaced the Retail-Wholesale sector's gain of 1.33% and the S&P 500's loss of 0.63%.
The upcoming earnings release of PDD Holdings Inc. Sponsored ADR will be of great interest to investors. The company is predicted to post an EPS of $2.85, indicating a 7.47% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $17.13 billion, up 18.04% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.37 per share and revenue of $70.74 billion, which would represent changes of +0.1% and +16.67%, respectively, from the prior year.
Any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. PDD Holdings Inc. Sponsored ADR is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 8.3 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.17.
Meanwhile, PDD's PEG ratio is currently 0.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PDD in the coming trading sessions, be sure to utilize Zacks.com.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned +5.8%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.85 per share for the current quarter, representing a year-over-year change of -7.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $10.37 for the current fiscal year indicates a year-over-year change of +0.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.14 indicates a change of +17.1% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PDD Holdings Inc. Sponsored ADR.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For PDD Holdings Inc. Sponsored ADR, the consensus sales estimate for the current quarter of $17.13 billion indicates a year-over-year change of +18%. For the current and next fiscal years, $70.74 billion and $78.89 billion estimates indicate +16.7% and +11.5% changes, respectively.
Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.
Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.
Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Allspring Global Investments Holdings LLC boosted its holdings in shares of PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD – Free Report) by 23.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 685,841 shares of the company’s stock after buying an additional 129,148 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in PDD were worth $69,805,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Norges Bank bought a new position in shares of PDD in the fourth quarter worth approximately $1,065,446,000. Assenagon Asset Management S.A. increased its holdings in PDD by 305.8% in the 4th quarter. Assenagon Asset Management S.A. now owns 6,728,909 shares of the company’s stock valued at $762,991,000 after acquiring an additional 5,070,827 shares during the last quarter. Himalaya Capital Management LLC purchased a new stake in PDD in the 2nd quarter worth $482,273,000. Dodge & Cox bought a new stake in shares of PDD in the fourth quarter worth about $503,429,000. Finally, Orbis Allan Gray Ltd boosted its stake in PDD by 135.6% during the second quarter. Orbis Allan Gray Ltd now owns 5,647,728 shares of the company’s stock valued at $591,091,000 after buying an additional 3,250,416 shares during the last quarter. 39.83% of the stock is owned by hedge funds and other institutional investors.
PDD Trading Down 2.9% NASDAQ PDD opened at $84.14 on Friday. PDD Holdings Inc. Sponsored ADR has a 12-month low of $71.94 and a 12-month high of $139.41. The firm’s fifty day simple moving average is $85.72 and its two-hundred day simple moving average is $97.72. The firm has a market capitalization of $119.76 billion and a P/E ratio of 9.09.
PDD (NASDAQ:PDD – Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The company reported $1.38 earnings per share for the quarter, missing analysts’ consensus estimates of $2.40 by ($1.02). PDD had a return on equity of 24.32% and a net margin of 21.86%.The business had revenue of $15.41 billion during the quarter, compared to analyst estimates of $15.92 billion. During the same period in the previous year, the business earned $1.57 EPS. The firm’s revenue for the quarter was up 11.0% compared to the same quarter last year. As a group, sell-side analysts predict that PDD Holdings Inc. Sponsored ADR will post 9.7 earnings per share for the current fiscal year.
Analyst Ratings Changes PDD has been the topic of a number of research reports. Sanford C. Bernstein reduced their price objective on PDD from $132.00 to $110.00 and set a “market perform” rating on the stock in a research note on Wednesday, May 27th. Jefferies Financial Group restated a “buy” rating on shares of PDD in a research report on Wednesday, May 27th. Barclays downgraded shares of PDD from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $165.00 to $89.00 in a report on Thursday, May 28th. Citigroup lowered their price target on shares of PDD from $142.00 to $123.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Finally, BNP Paribas Exane initiated coverage on PDD in a research note on Monday, June 15th. They set an “underperform” rating and a $89.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $124.64.
Check Out Our Latest Report on PDD
PDD Company Profile (Free Report)
PDD (NASDAQ: PDD) is the holding company best known for operating Pinduoduo, a China-based, mobile-first e-commerce platform that emphasizes interactive, social shopping and group-buying mechanics to drive user engagement and low prices. Founded in 2015 by entrepreneur Colin Huang, the business has grown by connecting consumers directly with merchants and manufacturers, with particular emphasis on value-oriented goods and fresh agricultural produce. The company is based in Shanghai and completed a U.S.
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PDD Holdings Inc. Sponsored ADR (PDD - Free Report) ended the recent trading session at $85.74, demonstrating a +2.18% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Prior to today's trading, shares of the company had gained 2.84% outpaced the Retail-Wholesale sector's gain of 0.54% and the S&P 500's gain of 1.61%.
The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. The company is expected to report EPS of $2.85, down 7.47% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $17.13 billion, indicating a 18.04% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.37 per share and a revenue of $70.74 billion, signifying shifts of +0.1% and +16.67%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.19% downward. As of now, PDD Holdings Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).
Looking at valuation, PDD Holdings Inc. Sponsored ADR is presently trading at a Forward P/E ratio of 8.09. This valuation marks a discount compared to its industry average Forward P/E of 16.76.
It is also worth noting that PDD currently has a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 1.04 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Shares of Alibaba (NYSE:BABA | BABA Price Prediction) are up 9% to $106 and change in early Wednesday trading, leading a broad rally in Chinese internet and e-commerce names. Alibaba stock closed at $98.14 on Tuesday, and even after this morning’s pop the shares remain down 28% year to date.
The move extends well beyond Alibaba. Baidu (NASDAQ:BIDU) shares are up 5% to $117.99, JD.com (NASDAQ:JD) shares are up 3% to $27.40, and PDD Holdings (NASDAQ:PDD) shares are up 2% to $84. Alibaba’s Hong Kong-listed shares climbed as much as 12%, the biggest jump since September.
Traders are rotating into beaten-down Chinese mega-caps after a sharp selloff in South Korea and Taiwan chipmakers, with the Kospi falling 5%. That regional shuffle is doing a lot of the work today, layered on top of a stock-specific catalyst at Alibaba.
Narrowing Instant-Commerce Losses Fuel the Alibaba Move The specific spark came from a pre-earnings analyst briefing indicating that losses in Alibaba’s highly competitive instant-commerce business narrowed last quarter, while overall profitability held steady. The report was first surfaced by local outlet Jiemian, and it landed in a market already primed for good news out of China.
That matters because instant commerce has been the biggest drag on Alibaba’s margins. The company’s fiscal Q4 2026 report on May 13 showed adjusted earnings before interest, taxes, and amortization (EBITA) dropping 84% to $740 million on a $123 million operating loss, even as revenue grew to $35.3 billion. Any signal that the losses are slowing down changes the setup into the next earnings report.
The AI and cloud story remains the other pillar of the bull case for Alibaba. The company’s Cloud Intelligence Group revenue grew 38% last quarter, and AI-related product revenue reached 30% of external cloud revenue for the 11th consecutive quarter of triple-digit AI growth. Alibaba CEO Eddie Wu has been emphatic about full-stack AI investment as the strategic priority.
Peers Catch the Rotation Bid Baidu, JD.com, and PDD Holdings are moving in sympathy rather than on company-specific news. The rotation trade is being driven by valuation; all three of these stocks are in the red on a year-to-date basis in 2026, leaving them well below where the group started the year.
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Baidu still has an AI cloud narrative that fits the day’s positive Chinese-AI sentiment. Reports that DeepSeek and Zhipu are each developing their own AI chips gave the whole space a lift. Baidu’s Q1 2026 report showed AI Cloud Infra revenue up 79% year over year with GPU Cloud revenue up 184%, and Apollo Go, its robotaxi service, is live in 27 cities.
JD.com and PDD Holdings are the pure e-commerce plays getting swept up in the rally. JD.com posted Q1 2026 revenue of $45.8 billion with JD Retail operating margin improving to 5.6%, and it launched the Joybuy platform across Europe on March 16. PDD Holdings, owner of Pinduoduo and Temu, delivered Q1 2026 revenue of $15.6 billion but missed on the bottom line as investment losses hit net income.
Bull Case vs. Bear Case The bull case on Alibaba is straightforward. Instant-commerce losses look to be narrowing, valuations across Chinese tech are cheap after steep declines, and renewed interest in Chinese AI adds a fresh growth angle. Reddit sentiment on Alibaba has actually been bearish over the past week, with sentiment scores of 12 to 25, which some traders read as capitulation ahead of a bounce.
The bear case hasn’t gone away, though. Chinese equities face persistent macro and regulatory pressure, instant commerce remains intensely competitive and structurally loss-making, and a single session of aggressive rotation can reverse just as fast. A one-day trade doesn’t change the long-term thesis on Alibaba or any of its peers, and investors may want to size their positions accordingly.
What to Watch Next The next major catalyst for Alibaba is the fiscal Q2 2026 earnings report, currently scheduled for August 17 before the market opens. That report will confirm or refute the narrowing-losses thesis that powered this morning’s move, and it lands with the stock already off its recent lows.
Market watchers can also check for whether Baidu, JD.com, and PDD Holdings shares hold their gains into Wednesday’s close. If the rotation is real, follow-through on Thursday matters more than any single morning pop. Cautious, modest position sizing makes sense given how quickly prior Chinese tech rallies have unwound in past cycles.
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PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed at $83.74 in the latest trading session, marking a +1.64% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.12%.
Shares of the company have depreciated by 3.15% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.64%, and the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.85, reflecting a 7.47% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.13 billion, indicating a 18.04% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.37 per share and a revenue of $70.74 billion, demonstrating changes of +0.1% and +16.67%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PDD Holdings Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.19% fall in the Zacks Consensus EPS estimate. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #3 (Hold).
Digging into valuation, PDD Holdings Inc. Sponsored ADR currently has a Forward P/E ratio of 7.95. This indicates a discount in contrast to its industry's Forward P/E of 17.68.
We can also see that PDD currently has a PEG ratio of 0.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -3.2%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has lost 3.3%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.85 per share, indicating a change of -7.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.3% over the last 30 days.
The consensus earnings estimate of $10.37 for the current fiscal year indicates a year-over-year change of +0.1%. This estimate has changed -2.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.14 indicates a change of +17.1% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has changed +1.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PDD Holdings Inc. Sponsored ADR is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For PDD Holdings Inc. Sponsored ADR, the consensus sales estimate for the current quarter of $17.13 billion indicates a year-over-year change of +18%. For the current and next fiscal years, $70.74 billion and $78.89 billion estimates indicate +16.7% and +11.5% changes, respectively.
Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.
Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.
Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Packs of clothing are pictured at a garment factory for Shein in Guangzhou, Guangdong province, China April 1, 2025. REUTERS/Casey Hall Purchase Licensing Rights, opens new tab
SummaryCompaniesParcels incur €3 for each separate customs code in a shipmentEU recorded 5.8 billion sub-€150 ecommerce shipments in 2025Platforms such as Shein increase EU warehouse space, may look elsewhere for growthBRUSSELS/LONDON, July 1 (Reuters) - Europe on Wednesday took a first step towards curbing what it calls unfair competition from online retailers such as Shein, Temu and AliExpress by imposing a €3 fee on low-value e-commerce imports from China that previously entered the bloc duty-free.
The move is another setback for platforms that used customs exemptions to sell goods at ultra-low prices, fuelling rapid growth and prompting complaints from retailers and policymakers. The U.S., their biggest market, ended its "de minimis" exemption for imports from China in May and for all imports at the end of August.
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The fees, which take effect on Wednesday, will be charged for each customs classification in a shipment. A parcel containing three different types of item would incur a total charge of €9, while a parcel containing multiple dresses or multiple toys would be charged €3.
Duty exemptions on low-value imports have been in place for decades, with the current threshold of €150 introduced in 2008. But the number of e-commerce parcels entering the European Union under the exemption has surged, reaching 5.8 billion in 2025 from 1.4 billion in 2022.
"In a different trading world this made a lot of sense, but that world doesn't exist anymore. It's been turned on its head by e-commerce, especially from China,” EU lawmaker Dirk Gotink, who leads the customs reform topic in the European Parliament, said in an interview.
"The exemption was abused and misused on an industrial scale to create a competitive advantage at the expense of EU businesses."
E-COMMERCE AIR CARGO VOLUMES SET TO DROPDerek Lossing, an e-commerce and air cargo consultant who runs Cirrus Global Advisors, said he expects air shipments of e-commerce goods into the EU to fall by 10% to 35% in the weeks after the fees take effect, with likely repercussions for global air cargo volumes.
"The question is how effective the platforms are in pivoting to other markets," said Lossing. "When the U.S. ended de minimis, Europe was a really good alternative that platforms could shift to – but now there's not a really clear alternative to Europe."
Lossing said platforms may pressure suppliers to absorb some of the additional costs to limit price increases for consumers and protect profitability.
Shein has been preparing for the change by expanding warehouse space in Wroclaw, Poland, and shipping more products to the EU in bulk.
Neither Shein nor Temu responded to requests for comment.
CONSUMER PRICES LIKELY TO RISE AS PLATFORMS PASS DUTIES ONThe €3 charge is a temporary measure that is due to be replaced by category-specific duties from July 1, 2028, when the new EU Customs Authority is scheduled to begin operations.
The fees are likely to increase consumer prices as platforms pass on at least some of the additional costs.
AliExpress, owned by Chinese e-commerce giant Alibaba, said in a statement that product listings would carry a "Price includes duties and VAT" label where applicable. For other items, customers would be shown a breakdown of import charges before completing a purchase.
Amazon, which launched its Amazon Haul ultra-cheap service after Temu and Shein's rapid growth, said 97% of its EU shipments last year were fulfilled from warehouses within the bloc. For products shipped from outside the EU, customers would also be shown import charges before checking out, it said.
Reporting by Helen Reid in London and Philip Blenkinsop in Brussels. Additional reporting by Bart Maijer in Brussels. Editing by Mark Potter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
London-based reporter covering the European retail sector through a global lens. Focusing on companies including Adidas, H&M, Ikea, and Inditex and analysing corporate strategy, consumer trends, and regulatory changes, Helen also covers major supermarket groups like Ahold Delhaize, Carrefour, and Casino. She has a special interest in sustainability and how investors push for change in companies. Previously based in Johannesburg where she covered the mining industry.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -17.4%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has lost 11.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.86 per share for the current quarter, representing a year-over-year change of -7.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.6%.
For the current fiscal year, the consensus earnings estimate of $10.61 points to a change of +2.4% from the prior year. Over the last 30 days, this estimate has changed -9.7%.
For the next fiscal year, the consensus earnings estimate of $12.39 indicates a change of +16.7% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has changed -7%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PDD Holdings Inc. Sponsored ADR.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of PDD Holdings Inc. Sponsored ADR, the consensus sales estimate of $17.13 billion for the current quarter points to a year-over-year change of +18%. The $70.74 billion and $78.89 billion estimates for the current and next fiscal years indicate changes of +16.7% and +11.5%, respectively.
Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.
Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.
Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
PDD Holdings is deeply undervalued at 4x ex-cash operating earnings, with market fears of domestic collapse unjustified by core growth metrics. Headline ad revenue growth is distorted by coupon accounting; true underlying ad growth is likely 12-15%, and operating profit rose 22%. Temu's business model is transitioning due to tariffs, with longer-term benefits from a less capital-intensive, more monetizable, semi-managed approach.
PDD Holdings is reiterated as a Strong Buy, supported by a fortress balance sheet and compelling long-term potential. PDD is entering a major investment cycle, allocating RMB 100 billion over three years to build first-party brands and strengthen supply chains. Despite near-term margin pressure and regulatory risks, PDD's major net cash position remains among China's best, with valuation and growth metrics also being very attractive.
Key Takeaways PDD posted Q1 non-GAAP EPS of $1.38 per ADS, down 11.5% Y/Y and below estimates.PDD Holdings revenue rose 17.5% to $15.4B, driven by transaction services up 20% in RMB terms.PDD ended March with RMB 436.1B in cash and investments, backing longer-cycle ecosystem initiatives. PDD Holdings Inc. Sponsored ADR (PDD - Free Report) posted first-quarter 2026 non-GAAP earnings of $1.38 per ADS (American Depositary Share), which missed the Zacks Consensus Estimate of $2.23 by 38.12%. The figure decreased 11.5% year over year. In domestic currency (Renminbi), the company reported earnings of RMB 9.51, down 16.7% year over year.
Quarterly revenues totaled $15.4 billion, up 16.8% year over year, but below the consensus mark of $15.90 billion by 3.4%. In domestic currency, revenues increased to RMB 106.2 billion, reflecting a 11% year-over-year rise. The top line was supported by continued momentum in transaction services, which increased 20% in Renminbi terms.
Revenues by SegmentsOnline marketing services and other revenues, representing 47% of total revenues, rose to RMB 49.9 billion ($7.2 billion), up 2.5% from the year-ago quarter.
Transaction services revenues, which accounted for 53% of total revenues, were RMB 56.3 billion ($8.2 billion), reflecting a 20% increase from the year-ago quarter.
Management tied its longer-term growth agenda to deeper supply chain work, with a focus on improving product standards, logistics capabilities and platform governance. The company emphasized that it is prioritizing ecosystem and supply chain investments over optimizing near-term financial outcomes.
PDD’s Q1 Operating DetailsIn the first quarter, sales and marketing expenses were RMB 33.8 billion ($4.9 billion), up from RMB 33.4 billion in the year-ago quarter.
General and administrative expenses were RMB 1.6 billion ($229 million), down from RMB 1.7 billion year over year.
Research and development expenses were RMB 4.4 billion ($640 million), up from RMB 3.6 billion on a year-over-year basis. The increase was driven by a sustained investment cycle tied to its strategy.
Non-GAAP operating profit was RMB 21.1 billion ($3.8 billion), up 15.3% year over year from RMB 18.3 billion. The margin expanded to 19.9% from 19.1% in the prior year.
PDD’s Balance Sheet & Cash FlowAs of March 31, 2026, cash, cash equivalents and short-term investments were RMB 436.1 billion ($63.2 billion), up from RMB 422.3 billion as of Dec 31, 2025. The balance sheet position continues to provide flexibility as the company leans into longer-cycle initiatives.
Other non-current assets were RMB 95.2 billion ($13.8 billion) as of March 31, 2026, compared with RMB 104.7 billion as of Dec. 31, 2025.
Net cash generated from operating activities was RMB 16.4 billion ($2.4 billion), up from RMB 15.5 billion in the prior quarter, supporting liquidity even as the company described ongoing ecosystem investments
PDD’s Zacks Rank & Stocks to ConsiderCurrently, PDD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Aramark (ARMK - Free Report) , Casey's General Stores (CASY - Free Report) and Ross Stores (ROST - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of ARMK have gained 44.7% year to date. It is set to report third-quarter fiscal 2026 results on Aug. 4.
Shares of CASY have gained 41.9% year to date. It is set to report fourth-quarter fiscal 2026 results in June. 9.
Shares of ROST have gained 29.6% year to date. It is scheduled to report second-quarter fiscal 2026 results on Aug. 20.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN PDD HOLDINGS INC. (PDD), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell during intraday trading on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, shares fell as much as 5% during intraday trading on May 28, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected]
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of the federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
What Happened?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell during intraday trading on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, shares fell as much as 5% during intraday trading on May 28, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
Whistleblower Notice
Persons with non-public information regarding PDD should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
About Glancy Prongay & Murray LLP
Glancy Prongay & Murray LLP (“GPM”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.
With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
PDD Holdings PDD is facing a new regulatory overhang in Europe after the European Union fined its Temu platform €200 million, or $232 million, for failing to stop unsafe baby toys and chargers from being sold on its marketplace. The European Commission said its investigation included a “mystery shopping exercise” and found products that could pose risks to buyers, including toys with high chemical levels, detachable parts that created choking risks, and chargers that failed basic safety tests.
For investors, the fine could raise fresh questions about how Temu manages product safety and platform governance as it continues competing with Shein and Amazon.com in the US and Europe. The Commission also said Temu's recommendation algorithms helped spread illegal products, adding another layer of concern around the company's operating model under Europe's Digital Services Act. That law applies to platforms with more than 45 million EU users and can carry penalties of up to 6% of annual global sales, making the case potentially important for how regulators treat large online marketplaces.
Temu pushed back against the decision, saying it disagreed with the European Commission and viewed the fine as disproportionate. The company said the EU's findings were tied to its first DSA assessment in 2024 and did not reflect the current state of its systems, while adding that it has since strengthened risk assessment, platform governance, and user protection. The next step could be just as important: Temu now has two months to propose a plan addressing the EU's concerns, and further periodic penalties remain possible if regulators are not satisfied.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -15.3%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has gained 0.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
PDD Holdings Inc. Sponsored ADR is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of -2.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $11.74 points to a change of +13.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $13.32 indicates a change of +13.5% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PDD Holdings Inc. Sponsored ADR.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of PDD Holdings Inc. Sponsored ADR, the consensus sales estimate of $17.13 billion for the current quarter points to a year-over-year change of +18%. The $71 billion and $79.17 billion estimates for the current and next fiscal years indicate changes of +17.1% and +11.5%, respectively.
Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.
Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.
Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about PDD Holdings Inc. Sponsored ADR (PDD - Free Report) .
PDD Holdings Inc. Sponsored ADR currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 20 recommendations that derive the current ABR, 10 are Strong Buy, representing 50% of all recommendations.
Brokerage Recommendation Trends for PDD
Check price target & stock forecast for PDD Holdings Inc. Sponsored ADR here>>>
The ABR suggests buying PDD Holdings Inc. Sponsored ADR, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in PDD?Looking at the earnings estimate revisions for PDD Holdings Inc. Sponsored ADR, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $11.74.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for PDD Holdings Inc. Sponsored ADR. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for PDD Holdings Inc Sponsored ADR.
Investing in growing businesses can be an excellent way to turn a $1,000 investment into much more in the long term. Now, however, may be a tricky time to invest given that valuations for many stocks are through the roof. Finding a good deal out there can be challenging.
However, three stocks that I think are among the best all-around buys right now are Microsoft (MSFT +0.11%), American Express (AXP +2.18%), and PDD Holdings (PDD +0.32%). They can be great stocks to invest $1,000 in today. Although they've been struggling this year, here's why I'm confident they can and will bounce back.
Image source: Getty Images.
Microsoft Microsoft has been a solid blue chip stock to own for decades, which makes what's happened with it this year all the more puzzling. It's been declining along with other software stocks and is down around 10% this year as investors grow overly concerned about artificial intelligence (AI) and its potential to disrupt businesses.
However, I think the concerns are overblown, especially as they pertain to Microsoft. AI may help businesses do more with less and improve efficiency, but there are also trust and reliability issues to consider as well. Microsoft's software is trusted by companies and professionals all over the world, and I just don't see that changing anytime soon. In fact, with AI, it's been enhancing its product offerings. Rather than hurt its business, AI is likely to improve it.
Today's Change
(
0.11
%) $
0.42
Current Price
$
390.76
The market is making a mistake when it comes to Microsoft's stock, and that's created an opportunity for investors to buy at a more reasonable valuation. At a forward earnings multiple of 24, Microsoft's value is appealing given its growth prospects and the stability it offers. For long-term investors, this is a stock that you'll definitely want to consider loading up on right now.
American Express Credit card company American Express is another solid stock to buy today. It has declined by about 16% this year. This may be due to a combination of fears about possible caps on the interest rates that credit cards charge and cryptocurrency reform, but the overall business itself is doing fine. During the first three months of the year, the company's earnings rose by 15%, and card member spending increased by 10%.
I don't like the idea of investing based on what might happen with legislation, simply because it can take a while to take effect, and bills can change drastically along the way. The reality is that credit cards are here to stay. Consumers need and rely on them, and the companies that issue them need to charge high rates to compensate for the risk they're taking on. That's why I wouldn't worry too much about these issues, especially when looking at the long term.
Today's Change
(
2.18
%) $
6.95
Current Price
$
325.44
American Express stock looks like an excellent buy today, trading at a forward P/E of only 18, which is less than the S&P 500 average of 22.
PDD Holdings Rounding out this list is the stock that may be the most underrated these days, and that's PDD Holdings, the company that owns Temu. It's down more than 20% this year as tariffs, trade issues, and other risks related to China weigh on its valuation.
Temu is still among the most visited e-commerce websites in the world. Demand for cheap products is going to remain high, regardless of economic conditions; consumers want deals. The current administration may be taking a tough stance on China and imported products, but that could very well change under the next one. This is where buying shares of PDD Holdings now, while its valuation is low (it trades at a forward P/E of only eight), could be advantageous in the long run.
Today's Change
(
0.32
%) $
0.26
Current Price
$
81.56
The company may be encountering challenges in the near term, but its revenue still rose by 11% during the first three months of the year. PDD is another undervalued stock that could generate significant returns for investors in the future.
Shares of Chinese e-commerce giant and Temu-owner PPD NASDAQ: PDD came under significant pressure at the end of 2025 and early 2026. In Q4 2025, shares fell more than 14%, and Q1 2026 saw a nearly 10% drop.
PDD Today
$81.56 +0.26 (+0.32%)
As of 04:00 PM Eastern
52-Week Range$78.87▼
$139.41P/E Ratio8.81
Price Target$131.33
Rather than staging a rebound after these falls, pressure has continued to mount. In Q2 2026, shares are down more than 15%. Overall, PDD (also known as Pinduoduo) has slumped approximately 40% from its 52-week high.
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A large contributor to PPD’s poor showing so far in Q2 was the company’s latest earnings report. The company posted significant misses on the top and bottom lines, leading shares to drop by approximately 14% in two days.
Now, PDD shares have fallen to a level not seen since August 2023.
So, has the long-term bull case for this stock changed, or is there still reason for optimism in this consumer discretionary name?
PDD Posts Huge Misses, But Operating Margin ImprovesIn its fiscal Q1 2026, PDD posted revenue of $15.4 billion, an increase of 11% year over year (YOY). (Note that PDD reports its quarterly results slightly behind the standard reporting period used by many companies.) Despite posting double-digit sales growth, analysts projected revenue of around $15.9 billion, resulting in a substantial miss for PDD.
Earnings per share fell by approximately 18% YOY to $1.38—massively below the $2.40 analysts forecasted. However, it's important to note that operating profit actually improved—with operating margin rising by 160 basis points to 18.4%.
The key driver of its large earnings drop was unfavorable outcomes from investment income and other income, rather than a large deterioration in the underlying business. Still, the company’s guidance suggests potential operating margin pressure going forward.
Understanding PDD’s Big First Party Platform InvestmentPDD plans to spend 100 billion Chinese renminbi (approx. $14.5 billion) over the next three years to further its first-party business. This is fundamentally different from the third-party e-commerce model on which PDD built its business. In third-party, the company simply acts as a marketplace that connects product sellers with buyers and takes a percentage of the sales value.
By contrast, first-party means the firm will own the products itself, taking on inventory and receiving the full sales value of each product as revenue. This introduces more risk for PDD if its first-party products don’t sell well, but also more upside if they do. While third-party is less complex, the lack of complexity also makes it more susceptible to competition. It is much easier for consumers to switch to another third-party platform where they can buy essentially the same low-quality goods they can on PDD’s platforms.
Thus, PDD is making this $14.5 billion investment to build out its product development and manufacturing capabilities. The hope is that long-term, PDD’s ability to control product quality will be a differentiator that staves off low-quality competition. However, because PDD must make these investments first before sales start to offset them, margins are likely to come under pressure in the near term as the company undertakes this shift.
One key advantage that PDD has as it makes this shift is the data accumulated from its third-party business about the products customers want. Essentially, the firm is betting that it can translate this knowledge into a product mix that resonates with buyers.
Current Price$81.43High Forecast$170.00Average Forecast$131.33Low Forecast$89.00PDD Stock Forecast Details
After PDD’s report, there was a significant deterioration in analyst forecasts. Among analyst updates for which MarketBeat had previous price target data, the average target fell by approximately 25%. Analysts at Barclays soured the most on PDD stock, driving their price target down from $165 to just $89. Still, the average of updated targets remained well above Barclays' forecast, near $116 per share.
This figure implies substantial upside of over 35%. However, it is considerably less optimistic than the MarketBeat consensus price target near $131, which implies upside north of 55%. Clearly, many analysts continue to believe that the market is undervaluing PDD stock, but expectations are moving down in a very material way. Nonetheless, it is worth noting that Barclays’ target is the most bearish PDD target tracked by MarketBeat. Despite this, the figure still projects an upside move of about 10%. Notably, PDD now retains zero Sell ratings, seven Hold ratings, and seven Buy ratings.
PDD’s Valuation Approaches Historically Low Level as Transformation Gets UnderwayPDD is making a significant long-term shift in its business. Given the fact that the payoff is uncertain and earnings are likely to be volatile, markets are punishing the stock. Still, PDD now trades at a forward price-to-earnings ratio of around 7.5x. This is just 10% higher than its lowest level over the past five years.
As PDD looks to differentiate itself within the highly competitive e-commerce market, there is reason to believe the stock could stage a significant long-term recovery. However, it is entirely possible that markets do not reward the firm for this move for some time and that shares continue to face pressure in the near term.
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LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) on behalf of investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.
What Is The Investigation About?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.
Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."
On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Call us at: 310-914-5007
Email us at: [email protected]
Visit our website at: www.frankcruzlaw.com.
Follow us for updates on Twitter at twitter.com/FRC_LAW.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Securities Fraud Investigation Into PDD Holdings Inc. (PDD) Continues -- Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz The Law Offices of Frank R. Cruz continues its investigation of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) on behalf of investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.
What Is The Investigation About?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.
Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."
On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Call us at: 310-914-5007
Email us at: [email protected]
Visit our website at: www.frankcruzlaw.com.
Follow us for updates on Twitter at twitter.com/FRC_LAW.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260611148982/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -14.9%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has lost 9.9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.86 per share, indicating a change of -7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.61 points to a change of +2.4% from the prior year. Over the last 30 days, this estimate has changed -9.7%.
For the next fiscal year, the consensus earnings estimate of $12.32 indicates a change of +16.1% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has changed -7.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PDD Holdings Inc. Sponsored ADR is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For PDD Holdings Inc. Sponsored ADR, the consensus sales estimate for the current quarter of $17.13 billion indicates a year-over-year change of +18%. For the current and next fiscal years, $70.73 billion and $78.88 billion estimates indicate +16.7% and +11.5% changes, respectively.
Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.
Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.
Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Investors in PDD Holdings Inc. (PDD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $55.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for PDD Holdings shares, but what is the fundamental picture for the company? Currently, PDD Holdings is a Zacks Rank #3 (Hold) in the Internet - Commerce industry that ranks in the Bottom 39% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.01 per share to $2.86 in that period.
Given the way analysts feel about PDD Holdings right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN PDD HOLDINGS INC. (PDD), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.
Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."
On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Law Offices of Howard G. Smith continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN PDD HOLDINGS INC. (PDD), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.
Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."
On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260612328693/en/
Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of the federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
What Happened?
On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.
On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.
On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.
On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.
Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."
On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
Whistleblower Notice
Persons with non-public information regarding PDD should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
About Glancy Prongay & Murray LLP
Glancy Prongay & Murray LLP (“GPM”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.
With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260612215290/en/
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company's possible violations of the federal securities laws.IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.What Happened?On January 19, 2026, Bloomberg reported that Chi.
