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.
Shares of this company have returned -11.6% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Internet - Commerce industry, to which PDD Holdings Inc. Sponsored ADR belongs, has lost 6.2% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
For the current quarter, PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.50 per share, indicating a change of -15.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.6% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $11.03 points to a change of +6.5% from the prior year. Over the last 30 days, this estimate has changed +8.3%.
For the next fiscal year, the consensus earnings estimate of $12.83 indicates a change of +16.4% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has changed +5.7%.
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 $17.65 billion for the current quarter points to a year-over-year change of +16.1%. The $70.08 billion and $77.75 billion estimates for the current and next fiscal years indicate changes of +15.6% and +10.9%, respectively.
Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $16.56 billion in the last reported quarter, representing a year-over-year change of +14.1%. EPS of $2.85 for the same period compares with $3.08 a year ago.
Compared to the Zacks Consensus Estimate of $17.13 billion, the reported revenues represent a surprise of -3.35%. The EPS surprise was 0%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates times 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.
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.
A single line in U.S. customs law quietly bankrolled the ultra-cheap fashion giants shipping from Guangzhou to your door. Now that the loophole is closed, the bill is coming due and investors are only beginning to count the damage.
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For years, a single line in United States customs law made ultra-cheap Chinese fashion viable. Any parcel valued under $800 could enter duty free under the de minimis exemption, originally designed for tourist souvenirs. Shein and Temu turned it into a business model, air-freighting a $5 top or $12 dress directly from Guangzhou to American doorsteps without tariffs a department store would have paid. The United States ended that exemption for e-commerce shipments last year. The European Union followed, imposing fees on low-value parcels effective July 1, 2026. The bill arrived this week in Hong Kong.
A $100 Billion Unicorn Prices at $26 Billion Shein went public Tuesday, trading as 0625.HK on the Hong Kong Stock Exchange. American readers should know upfront: the shares are not listed on any U.S. exchange, and most retail brokerages cannot buy them.
Shares fell as much as 10% in early trade, hitting a low of HK$43.80, then finished at HK$48.50, just below the IPO price of HK$48.56. The close valued Shein at about $26.3 billion, versus a 2022 private-market peak of nearly $100 billion. On Wednesday, Reuters reported Shein shares slid more than 5% on their second day of trading. Roughly $70 billion in paper wealth, gone.
The flat first-day close was engineered. Reuters reports the rebound resulted from stabilisation measures applied to large listings, with Goldman Sachs serving as IPO stabilising manager. The IPO represented about 6.6% of enlarged share capital, cornerstone investors took about one-fifth and are locked up for six months, leaving roughly 5% freely tradeable. Jianggan Li, CEO of Momentum Works, told Reuters: “I think the real test is how the stock trades over the next few weeks once the excitement of the debut and eventually the stabilisation period passes.”
Temu’s Owner Shows the Damage on a Public Balance Sheet To see how the closed loophole reshapes the model, look at PDD Holdings (NASDAQ:PDD | PDD Price Prediction), the Nasdaq-listed parent of Temu. Second-quarter revenue grew just 8.05% year over year, and net income fell 11.61%. Co-CEO Chen Lei told analysts, “In the short term, cross-border orders in the affected markets will face lower fulfillment efficiency and higher costs, which will have a considerable impact on those parts of our business.” Josh Gilbert, lead analyst for Asia-Pacific at eToro, told Reuters daily active users in Europe have fallen around 45% since the EU scrapped its duty exemption on small parcels, and that Temu has seen a similar drop. PDD is down 26.65% year to date.
Charu Chanana, chief investment strategist at Saxo, told Reuters that Shein trades at 15 times forward earnings, more than double the multiple for PDD Holdings. Her verdict: “I think the weak debut shows that even after the huge valuation reset, investors still don’t see Shein as obviously cheap.”
What Regular Investors Should Take Away Shein generated $41.8 billion in 2025 net revenue, up from $38.7 billion the prior year, and posted a $99 million net loss on $9.05 billion in first quarter 2026 revenue. Real damage is showing up in margins. Add the ongoing U.S. Federal Trade Commission consumer protection investigation and a European Commission probe into illegal products and platform design, and the risk stack is heavy.
The transferable lesson: tax and tariff arbitrage is a policy choice, not a moat. When Washington closes the window, a $100 billion valuation can print at $26 billion. Watch the next few weeks of Hong Kong trading, once Goldman’s stabilisation authority expires, for the true price.
Contact [email protected] for any questions or corrections.
PDD Holdings is downgraded to Hold following Q2 2026 results that missed consensus, with online marketing revenue moderating and regulatory risks rising. PDD's shift from an asset-light to asset-heavy model, uncertain ROI on its RMB100bn supply chain investment, and intensifying competition are weighing on its growth outlook and valuation. Temu's global expansion faces headwinds from regulatory changes and higher costs, while core ad revenue remains structurally challenged by Alibaba and ByteDance.
On paper, PDD Holdings Inc. NASDAQ: PDD gave investors plenty to cheer in its Aug. 24 earnings report, comfortably beating expectations on earnings. Shares of the Chinese e-commerce giant duly popped at the open, yet by the closing bell, that early enthusiasm had evaporated and the stock slipped into the red, a telling sign that all isn't quite as rosy as the headline beat suggested. A modest rebound in Aug. 25 trading did little to dispel the doubts.
That muted response speaks volumes about the questions still hanging over the owner of budget shopping apps Pinduoduo and Temu. The shares remain down almost 25% for the year, and the failure to hold on to that post-earnings pop puts a nascent recovery, one that has seen the stock climb around 20% since late June, at risk of stalling.
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So why did a profit beat fail to win investors over? The answer lies not in the numbers the company beat, but in the ones it missed, and in the risks that refuse to go away.
A Mixed Report Beneath the SurfaceFor starters, the results were far more mixed than the headline profit beat implies. While earnings came in ahead of forecasts, revenue fell short of expectations, growing a respectable but underwhelming 8% year on year. For a company long prized as a growth machine, a top-line miss is exactly the kind of thing to give investors pause.
More troubling was the direction of net income. Despite the beat, the company's bottom line declined markedly from a year earlier, with net income falling by double digits. In other words, PDD is making less money than it was 12 months ago, even as its sales grow, a classic warning sign of a business under mounting cost pressure.
That combination, slowing revenue growth paired with shrinking profits, gets to the heart of why the market hesitated: the company is continuing to spend heavily in pursuit of longer-term growth.
The Squeeze on ProfitabilityAt the core of the bear case is exactly this erosion of profitability, as PDD plows money back into its platforms. The company is investing heavily in merchant subsidies and AI-powered shopping tools, and while that spending may support growth in the long run, it's clearly weighing on margins now.
The worry is that the pressure only intensifies from here: should competition force PDD to keep spending to defend its position, profits could stay under strain for some time. For a stock whose appeal has long rested on turning growth into hefty profits, any sign that the formula is breaking down is bound to unsettle the market.
Temu's Regulatory CloudBeyond the margin worries lies a thornier challenge: mounting regulatory scrutiny facing Temu, the group's fast-growing international arm. Management acknowledged the difficulty head-on, noting that the global trade and regulatory landscape has continued to shift, creating significant challenges even as it opens fresh opportunities.
That careful language reflects a real overhang. Temu's meteoric rise was built in part on shipping ultra-cheap goods across borders, a model now squarely in regulators' sights. Changes to the rules on low-value imports, along with tighter customs enforcement and new tariffs, threaten to raise costs and complicate the very growth story that made Temu so compelling.
The Battle on Home TurfIf the international picture is clouded, the domestic one is no less fierce. Back in China, competition among the big e-commerce players has rarely been more intense, and the result has been a costly spending war that has squeezed margins across the sector.
There is some comfort for PDD here, since compared with certain rivals, many of whose profits have taken an even heavier battering, the company has proven relatively resilient so far. But resilience is not immunity. As long as the price war rages, PDD may have to keep spending heavily to hold its ground, adding more pressure to the margins that investors are already fretting about.
Cheap, But Not Yet ConvincingPDD Stock Forecast Today12-Month Stock Price Forecast:
$117.17
36.73% Upside
Hold
Based on 15 Analyst Ratings
Current Price$85.69High Forecast$170.00Average Forecast$117.17Low Forecast$80.00PDD Stock Forecast Details
Weighing it all up, the market's tepid reaction makes sense. A profit beat is all well and good, but set against a revenue miss, falling profits, and a thicket of regulatory and competitive risks, it was never likely to spark a lasting rally on its own. The muted response looks less like an overreaction than a sober assessment of a decidedly mixed picture.
That caution is shared more widely. Following the results, Deutsche Bank reiterated its Hold rating, a stance that chimes with the broader MarketBeat consensus rating of Hold. The message from both is one of watchful patience rather than conviction in either direction.
For now, PDD finds itself in a familiar bind—cheap enough to tempt bargain hunters, yet saddled with enough uncertainty to keep the doubters at bay. Whether the recovery regains its footing will depend less on any single earnings beat than on whether the company can prove its profits, and not just its sales, are built to last.
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A rather tepid quarterly earnings report published by PDD Holdings (PDD -1.48%) led to a modest sell-off in its U.S.-listed equity on Monday.
The company, perhaps best known for its international e-commerce site Temu, didn't have a bad second quarter, but its results weren't spectacular, either. Its American Depositary Shares (ADSs) sank by 1.5% during that trading session as a result.
Revenue up, adjusted profitability down PDD reported quarterly revenue of 112.4 billion yuan ($16.7 billion), representing 8% year-over-year growth. That was the encouraging news; on the discouraging front, net income not under generally accepted accounting principles (non-GAAP, or adjusted) declined by 13% to 28.5 billion yuan ($4.2 billion). This translates to 19.33 yuan ($2.88) per ADS.
Image source: Getty Images.
Both headline figures landed roughly in line with consensus analyst estimates. PDD-following analysts were modeling 113.9 billion yuan ($16.9 billion) on the top line, and adjusted net income of 18.35 yuan ($2.73) per ADS.
In its earnings release, PDD quoted CEO Lei Chen as saying that "Since the start of the year, global trade and regulatory landscapes have continued to evolve, creating significant challenges while also presenting new opportunities."
The company ramped up investments in its ecosystem during the quarter and promised to continue doing so. This was a key factor in the bottom-line slide.
Today's Change
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Trouble with tariffs China-based e-commerce companies like PDD are subject to the trade and regulatory factors Chen mentioned. While some have worked in its favor, it remains susceptible to these, particularly under an American presidential administration fond of using tariffs as a tool of foreign and economic policy.
Given that, I feel that the international business of PDD and its peers in the large Asian country is always at risk, and in ways that can be hard to predict. I wouldn't be a buyer of its ADSs these days.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) came out with quarterly earnings of $2.85 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $3.08 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $2.23 per share when it actually produced earnings of $1.38, delivering a surprise of -38.12%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
PDD Holdings Inc. Sponsored ADR, which belongs to the Zacks Internet - Commerce industry, posted revenues of $16.56 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.35%. This compares to year-ago revenues of $14.52 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PDD Holdings Inc. Sponsored ADR shares have lost about 22.1% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for PDD Holdings Inc. Sponsored ADR?While PDD Holdings Inc. Sponsored ADR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PDD Holdings Inc. Sponsored ADR was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.67 on $17.82 billion in revenues for the coming quarter and $10.37 on $70.74 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Chewy (CHWY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 9.
This online pet store is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Chewy's revenues are expected to be $3.32 billion, up 6.8% from the year-ago quarter.
PDD Holdings (PDD) is experiencing a decline in stock price following its Q2 earnings report, which showcased a mixed performance. While non-GAAP diluted earnin
PDD Holdings Inc. (NASDAQ:PDD) says its biggest long-term growth initiative isn’t another overseas expansion or a major acquisition. Instead, management says it is executing a three-year plan to build what it calls “another PDD” by transforming supply chains, helping manufacturers develop brands, and strengthening the company’s commerce ecosystem.
The ambitious goal emerged as one of the clearest strategic themes from PDD’s latest earnings call, with both Co-CEO Jiazhen Zhao and Co-CEO Lei Chen repeatedly returning to the initiative while outlining the company’s next phase of growth.
‘Building Another PDD’ Is The Next Three-Year GoalOpening the call, Zhao said the company has already moved beyond the initial rollout phase of its new strategy.
“Our 100 billion RMB ($14.5 billion) support program has entered a phase in which our sustained investment is beginning to yield tangible results,” Zhao said. “The positive effects across our platform and industry are being unlocked at a faster pace, with improvements in both the quality and efficiency across the supply and demand sides.”
He then laid out the company’s headline objective.
“At the same time, we continue to make steady progress on our strategic goal of building another PDD over the next three years,” Zhao said.
Rather than describing a new consumer app or another Temu-style international platform, management presented the initiative as a long-term effort to deepen the company’s supply-chain capabilities and create new sources of growth across its merchant ecosystem.
The Focus Is On Supply Chains, Not Just E-CommercePDD said it is investing heavily in upgrading traditional manufacturing and agricultural supply chains rather than simply expanding its marketplace.
Zhao said the company will “commit fully to transforming the supply chain for higher-quality growth, drive the upgrading of traditional industries, and continue to unlock the supply chain’s new growth potential from within.”
To support that effort, PDD said it has established “a dedicated company in the Xiong’an New Area” to focus on opportunities created by intelligent technologies while also setting up data processing and integrated service centers to help traditional manufacturers pursue higher-quality development.
Management also highlighted examples of manufacturers shortening production cycles, improving fulfillment capabilities and launching higher-value branded products with the platform’s support.
Supply Chain Investment Is Becoming PDD’s Growth EngineChen reinforced that message later in the call, describing supply-chain investment as the centerpiece of the company’s long-term strategy.
He said PDD “continue[s] to work towards our three-year initiative of building another PDD” and has “stepped up supply chain investments and helped supply chain partners build and develop their own brands.”
According to Chen, those investments are already beginning to improve the platform ecosystem.
During the quarter, he said, “our long-term investment in the 100 Billion Support Program started to materialize into gains in a healthier platform ecosystem.”
He added that the company has gone beyond simply supporting merchants financially.
“Our teams delved into the industrial belts of different product categories and started early-stage cooperations with high-quality suppliers,” Chen said.
By “setting clear standards for products, production processes, and quality control,” he said PDD is helping manufacturers “develop a range of higher-quality products with higher margins” while “driving the manufacturing sectors up the value chain.”
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A Different Way To Measure GrowthFor investors, one of the biggest takeaways from the earnings call was that PDD increasingly appears to be measuring success differently.
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Rather than emphasizing quarterly profitability or short-term monetization, management repeatedly framed investments in merchants, manufacturing capabilities and logistics as the foundation for the company’s next decade.
Chen said the company remains “laser-focused on our core e-commerce business,” but believes deeper supply-chain investment will allow it to “empower our merchants and broader industry, delivering a wider range of high-quality products and services.”
He concluded by reiterating management’s confidence that the strategy will produce measurable results.
“We are confident in our ability to translate our three-year initiative of building another PDD into tangible, verifiable results,” Chen said.
For shareholders, that phrase may become one of the company’s most closely watched strategic milestones over the next three years—not because PDD is launching another marketplace, but because management believes strengthening the ecosystem behind its existing platforms can create the next engine of long-term growth.
PDD Holdings Inc. delivered strong Q2 revenues, beating earnings estimates and demonstrating robust growth in domestic and international e-Commerce operations. PDD maintained operating income margins of ~25% in the second-quarter despite AI-driven investments into its e-Commerce infrastructure. E-commerce transactions will remain a major growth engine, while PDD leverages AI to enhance product discovery and merchant conversions across its platforms.
PDD Holdings Inc. (NASDAQ:PDD) warns that Temu is facing fresh margin pressure from upcoming European Union tariffs, threatening to hike costs and slow shipping times just months after U.S. trade policy shifts disrupted its cross-border model.
Co-CEO Lei Chen said the company is now adapting its operations to a rapidly changing global regulatory environment to preserve Temu’s long-term growth. The comments, made on PDD’s second-quarter earnings call, come as Temu faces mounting trade barriers in two of its largest overseas markets.
Europe Becomes Temu’s Next Trade ChallengeResponding to a question about the EU’s new customs duties on low-value imports, Chen acknowledged that the changes will pressure Temu’s cross-border business.
“On the changes to the EU customs duties that you mentioned, our team is actively assessing and adapting to them,” Chen said.
He added that, “Drawing on the experience that we have gained over the years, we have adjusted our supply chain and we are optimizing our fulfillment processes.”
Even so, management expects the policy changes to create meaningful near-term disruption.
“In the short term, cross-border orders in the affected markets will face lower fulfillment efficiency and higher costs, which will have a considerable impact on those parts of our business,” Chen said.
The comments mark one of PDD’s clearest acknowledgments that Europe is becoming the next major regulatory hurdle for Temu after changes to U.S. trade rules forced the company to rethink parts of its cross-border shipping model.
Temu Is Changing How It OperatesRather than signaling a retreat from international markets, PDD said the latest trade headwinds are accelerating changes already underway.
Chen said the company will “continue to onboard and support more high-quality local merchants to broaden the supply of local products.”
PDD is also accelerating the build-out of local warehousing and fulfillment infrastructure, Chen added.
The goal is to reduce reliance on direct cross-border shipments while building stronger local operations that can better withstand future policy changes.
“Through these investments, we hope to integrate more deeply into every market we serve, strengthen the foundation and resilience of our supply chain, and better navigate changes and volatility in the environment,” Chen said.
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Compliance Is Becoming A Competitive PriorityManagement also made clear that adapting to global regulation involves more than logistics.
Chen said PDD will continue investing in “compliance capabilities and platform governance” alongside supply-chain improvements.
The company has also “developed systematic IP protection capabilities,” which Chen said has been reinforced by “our recent favorable ruling in the IP litigation involving an industry peer.”
According to management, those investments are intended to strengthen trust with consumers, merchants and regulators as Temu expands internationally.
A More Challenging Global Growth StoryIn addition to the fickle nature of U.S. trade policy, PDD must also contend with Europe’s introducing another layer of costs and operational complexity that could pressure the economics of cross-border e-commerce.
Still, management emphasized that the long-term strategy remains unchanged.
“We are confident in our execution capabilities and organizational resilience,” Chen said. “Short-term volatility will not change the long-term direction of our global business.”
PDD will continue advancing its investments across “supply chain, fulfillment, compliance, and consumer service,” with the goal of providing consumers around the world “with a shopping platform that remains stable over the long term and offers compelling prices and reliable quality—a platform that they can count on, trust, and enjoy using.”
PDD Holdings Inc. (PDD) Q2 2026 Earnings Call August 24, 2026 7:30 AM EDT
Company Participants
Jiazhen Zhao - Co-CEO & Co-Chairman of the Board
Lei Chen - General Counsel, Co-CEO & Co-Chairman of the Board
Jun Liu - Vice President of Finance
Conference Call Participants
Thomas Chong - Jefferies LLC, Research Division
Alicis a Yap - Citigroup Inc., Research Division
Joyce Ju - BofA Securities, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for standing by, and welcome to PDD Holdings, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your host today.
Sir, please go ahead.
Unknown Executive
Thank you, operator, and hello, everyone, and thank you for joining us today. PDD Holdings' earnings release was distributed earlier and is available on our website at investor.pddholdings.com as well as through the GlobeNewswire services. Before we begin, I'd like to refer you to our safe harbor statement in the earnings press release, which applies to this call as we'll make certain forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to GAAP measures.
Joining us today on the call are Mr. Chen Lei, our Co-Chairman and Co-Chief Executive Officer; Mr. Zhao Jiazhen, our Co-Chairman and Co-Chief Executive Officer; as well as Mr. Liu Jun, our Financial Director. Lei and Zhao Jiazhen will make some general remarks on our performance for the past quarter and our strategic focus. Jun will then walk us through our financial results for the second quarter ended June 30, 2026. On today's call, certain management remarks will be in Chinese and we will help translate. Please kindly note that English translation is for reference only. And in case of any discrepancy, statements in the original language
Has Temu-Owner PDD's Story Changed After Double Miss?PDD NASDAQ: PDD reported second-quarter 2026 revenue growth of 8% as the e-commerce company continued to increase investment in platform governance, merchant support, supply-chain development and rural logistics. Net income declined as those investments weighed on profitability.
Revenue for the quarter ended June 30 was RMB112.4 billion, while net income attributable to ordinary shareholders was RMB27.2 billion, down 12% from a year earlier. Co-Chairman and Co-Chief Executive Officer Zhao Jiazhen said the company’s performance remained steady, but that continued investment in its platform and broader industry ecosystem affected quarterly results.
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Revenue Growth Led by Transaction Services MarketBeat Week in Review – 03/30 - 04/03Financial Director Jiong Li said transaction-services revenue increased 13% year over year to RMB54.7 billion. Revenue from online marketing services and other sources was RMB57.6 billion, compared with RMB55.7 billion in the same quarter of 2025.
Total cost of revenue rose 5% to RMB48 billion. On a GAAP basis, operating expenses increased 13% to RMB36.6 billion. Research and development expense, measured on a non-GAAP basis, climbed 40% year over year to RMB4.3 billion, while non-GAAP sales and marketing expenses increased 10% to RMB29.3 billion.
GAAP operating profit increased 8% to RMB27.8 billion. Non-GAAP operating profit was RMB29.1 billion, compared with RMB27.7 billion a year earlier. Non-GAAP operating margin was 26%, versus 27% in the prior-year quarter. Diluted earnings per ADS were RMB18.45 on a GAAP basis, down from RMB20.75 a year earlier. Net cash generated from operating activities rose to RMB25.7 billion from RMB21.6 billion. Down 25%, Chinese Giant PDD Could Be a Strong Long-Term ValueAs of June 30, PDD had RMB456.4 billion in cash equivalents and short-term investments.
Support Program and Governance Investments Zhao said PDD’s RMB100 billion support program has entered a phase in which sustained investment is beginning to produce results across the platform’s supply and demand ecosystem. The initiative includes fee reductions, merchant support and programs aimed at agricultural regions and manufacturing clusters.
The company said it has introduced more than 150 comprehensive trust-and-safety measures to date, including more than 50 targeted initiatives in June. Those measures addressed product-listing controls, food and drug safety, merchant qualification reviews, advertising compliance, intellectual-property protection, misleading marketing and livestream e-commerce standards.
PDD also said it has increased R&D spending on risk-control systems and expanded specialist trust-and-safety teams. In food safety, the company said it prohibited the sale of freshly prepared food and beverage products, while tightening merchant-review and product-information requirements.
The support program has extended to agricultural areas through the company’s Duoduo Premium Produce Initiative, which has worked with specialty-producing regions on product development, cultivation standards and cold-chain logistics. Zhao cited Hainan’s Golden Diamond pineapple as an example, saying local planting area for the variety had expanded to more than 100,000 mu from initially scattered trial plots.
In manufacturing regions, PDD said it is helping merchants with traffic exposure, data tools, market expansion, cost reductions, smart manufacturing and warehousing upgrades. Zhao said some factories supported through these efforts had cut production cycles in half and improved fulfillment capacity.
Rural Delivery and Supply-Chain Focus PDD said its free-shipping-to-villages program, launched six months ago, has established last-mile networks in more than 10 provinces and municipalities, including county-level transit hubs and village pickup points. The company said the program is intended to broaden rural access to consumer goods, appliances, agricultural supplies and farming equipment while creating jobs in counties and rural communities.
During the question-and-answer session, Zhao said e-commerce logistics are relatively mature across much of China but last-mile delivery remains a bottleneck in remote western areas and rural communities. He said the company would continue making targeted, practical investments to improve fulfillment reliability and address those gaps.
Zhao also said PDD does not currently see significant synergies between its core e-commerce and grocery businesses and quick commerce, given differences in supply-chain requirements and operating models. Rather than pursuing that area, the company plans to focus resources on improving product supply and delivery infrastructure where it believes it has established strengths.
Global Regulatory Changes and First-Party Brands Co-Chairman and Co-Chief Executive Officer Chen Lei said changes in global regulatory and compliance requirements have created both challenges and opportunities for PDD’s international business. Addressing a question about new European Union customs duties on low-value cross-border shipments, Chen said affected markets would face lower fulfillment efficiency and higher costs in the short term, which would have a considerable impact on those businesses.
In response, PDD is adjusting supply chains, optimizing fulfillment processes, onboarding more local merchants and accelerating local warehousing and fulfillment infrastructure, Chen said. The company also plans to continue strengthening product quality, consumer protection and intellectual-property compliance.
Zhao provided an update on PDD’s first-party brand initiative, describing it as an extension of the company’s long-term supply-chain investment. The business will selectively focus on product categories where PDD and its supply-chain partners have advantages, working with manufacturers on product planning, research and development, quality standards and market testing.
He said the initial rollout has taken longer than expected, but remains a long-term strategic priority. PDD’s first-party products will complement, rather than replace, offerings from third-party merchants, Zhao said, with both intended to serve different consumer use cases and market segments.
Looking ahead, Li said PDD remains confident in the long-term potential of China’s consumer market and e-commerce industry. He said the company’s focus remains on strengthening its merchant ecosystem and supply chain, with the expectation that sustainable growth in the platform’s intrinsic value will follow over time.
About PDD (NASDAQ:PDD)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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DUBLIN and SHANGHAI, Aug. 24, 2026 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD), today announced its unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
Total revenues in the quarter were RMB112.4 billion (US$1 16.6 billion), an increase of 8% from RMB104.0 billion in the same quarter of 2025.Operating profit in the quarter was RMB27.8 billion (US$4.1 billion), an increase of 8% from RMB25.8 billion in the same quarter of 2025. Non-GAAP2 operating profit in the quarter was RMB29.1 billion (US$4.3 billion), an increase of 5% from RMB27.7 billion in the same quarter of 2025.Net income attributable to ordinary shareholders in the quarter was RMB27.2 billion (US$4.0 billion), a decrease of 12% from RMB30.8 billion in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB28.5 billion (US$4.2 billion), a decrease of 13% from RMB32.7 billion in the same quarter of 2025.
“Since the start of the year, global trade and regulatory landscapes have continued to evolve, creating significant challenges while also presenting new opportunities,” said Mr. Lei Chen, Co-Chairman and Co-Chief Executive Officer of PDD Holdings. “We feel a strong sense of responsibility that comes with our unique position in global trade and will work diligently to build a trustworthy platform that consumers can rely on over the long run.”
“During the first half of the year, we continued to strengthen ecosystem governance within our daily operations, rolling out targeted trust and safety initiatives across categories,” said Mr. Jiazhen Zhao, Co-Chairman and Co-Chief Executive Officer of PDD Holdings. “We view compliance as a fundamental priority and are fully committed to safeguarding consumer rights and building lasting trust.”
“We stepped up our ecosystem investments in the second quarter,” said Ms. Jun Liu, VP of Finance of PDD Holdings. “At this stage, our priority is helping merchants thrive and strengthening the broader industry ecosystem. We will continue to focus on these fundamentals to drive the platform’s sustainable development over the long term.”
_______________________________
1 This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026 as set forth in the H.10 Statistical Release of the Federal Reserve Board.
2 The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.
Second Quarter 2026 Unaudited Financial Results
Total revenues were RMB112.4 billion (US$16.6 billion), an increase of 8% from RMB104.0 billion in the same quarter of 2025. The increase was primarily due to the increase in revenues from transaction services.
Revenues from online marketing services and others were RMB57.6 billion (US$8.5 billion), compared with RMB55.7 billion in the same quarter of 2025.Revenues from transaction services were RMB54.7 billion (US$8.1 billion), an increase of 13% from RMB48.3 billion in the same quarter of 2025.
Total costs of revenues were RMB48.0 billion (US$7.1 billion), compared with RMB45.9 billion in the same quarter of 2025.
Total operating expenses were RMB36.6 billion (US$5.4 billion), an increase of 13% from RMB32.3 billion in the same quarter of 2025. The increase was primarily due to the increase in sales and marketing expenses.
Sales and marketing expenses were RMB29.7 billion (US$4.4 billion), compared with RMB27.2 billion in the same quarter of 2025.General and administrative expenses were RMB2.3 billion (US$345 million), compared with RMB1.5 billion in the same quarter of 2025.Research and development expenses were RMB4.6 billion (US$673 million), compared with RMB3.6 billion in the same quarter of 2025.
Operating profit in the quarter was RMB27.8 billion (US$4.1 billion), an increase of 8% from RMB25.8 billion in the same quarter of 2025. Non-GAAP operating profit in the quarter was RMB29.1 billion (US$4.3 billion), an increase of 5% from RMB27.7 billion in the same quarter of 2025.
Net income attributable to ordinary shareholders in the quarter was RMB27.2 billion (US$4.0 billion), a decrease of 12% from RMB30.8 billion in the same quarter of 2025. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB28.5 billion (US$4.2 billion), a decrease of 13% from RMB32.7 billion in the same quarter of 2025.
Basic earnings per ADS was RMB19.32 (US$2.85) and diluted earnings per ADS was RMB18.45 (US$2.72), compared with basic earnings per ADS of RMB22.01 and diluted earnings per ADS of RMB20.75 in the same quarter of 2025. Non-GAAP diluted earnings per ADS was RMB19.33 (US$2.85), compared with RMB22.07 in the same quarter of 2025.
Net cash generated from operating activities was RMB25.7 billion (US$3.8 billion), compared with RMB21.6 billion in the same quarter of 2025.
Cash, cash equivalents and short-term investments were RMB456.4 billion (US$67.3 billion) as of June 30, 2026, compared with RMB422.3 billion as of December 31, 2025.
Other non-current assets were RMB96.4 billion (US$14.2 billion) as of June 30, 2026, compared with RMB104.7 billion as of December 31, 2025, which mainly included time deposits, held-to-maturity debt securities, and available-for-sale debt securities.
Conference Call
The Company’s management will hold an earnings conference call at 7:30 AM ET on August 24, 2026 (12:30 PM IST and 7:30 PM HKT on the same day).
The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating profit, non-GAAP net income attributable to ordinary shareholders, non-GAAP diluted earnings per ordinary share, and non-GAAP diluted earnings per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s non-GAAP financial measures exclude the impact of share-based compensation expenses.
The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measures help identify underlying trends in its business by excluding the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the non-GAAP financial measures may provide further information about the Company’s results of operations, and enhance the overall understanding of the Company’s past performance and future prospects.
The Company’s non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. These non-GAAP financial measures do not reflect all items of income and expenses that affect the Company’s operations and do not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure.
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measures” set forth at the end of this press release.
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in the e-commerce markets globally and in the countries or regions where the Company has operations; changes in its revenues and certain cost or expense items; the expected growth of e-commerce markets globally and in the countries or regions where the Company has operations; developments in the relevant governmental policies and regulations relating to the Company’s industry; and general economic and business conditions globally and in the countries or regions where the Company has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
About PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.
PDD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of
December 31, 2025
June 30, 2026
RMB RMB
(Unaudited) US$
(Unaudited) ASSETS Current assets Cash and cash equivalents 108,901 128,918 19,000 Restricted cash 73,831 77,274 11,389 Receivables from online payment platforms 5,109 6,079 896 Short-term investments 313,408 327,496 48,267 Amounts due from related parties 10,205 8,432 1,243 Prepayments and other current assets 7,527 8,581 1,265 Total current assets 518,981 556,780 82,060 Non-current assets
Property, equipment and software, net 1,306 4,752 700 Intangible assets 15 14 2 Right-of-use assets 4,863 4,316 636 Deferred tax assets 172 1,162 171 Other non-current assets 104,708 96,383 14,205 Total non-current assets 111,064 106,627 15,714 Total Assets 630,045 663,407 97,774 PDD HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in millions of Renminbi (“RMB”) and U.S. dollars (“US$”)) As of December 31, 2025
June 30, 2026 RMB RMB
(Unaudited) US$
(Unaudited)LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Amounts due to related parties1,087 1,266 187 Customer advances and deferred revenues3,379 3,641 537 Payable to merchants107,407 109,924 16,201 Accrued expenses and other liabilities81,658 76,883 11,330 Merchant deposits17,708 18,545 2,733 Lease liabilities2,499 2,455 362 Total current liabilities213,738 212,714 31,350 Non-current liabilities Lease liabilities2,880 2,389 352 Other non-current liabilities42 517 76 Total non-current liabilities2,922 2,906 428 Total Liabilities216,660 215,620 31,778 Shareholders’ equity Ordinary shares-* -* -* Additional paid-in capital125,768 128,599 18,953 Statutory reserves1,338 1,338 197 Accumulated other comprehensive income/(loss)2,116 (6,042) (890) Retained earnings284,163 323,892 47,736 Total Shareholders’ Equity413,385 447,787 65,996 Total Liabilities and Shareholders’ Equity630,045
663,407 97,774 * Absolute value is less than RMB1 million or US$1 million.
PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in millions of RMB and US$)
For the three months ended June 30, For the six months ended June 30, 2025
2026
2025
2026
RMB RMB US$ RMB RMB US$(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)Revenues 103,985 112,358 16,560 199,657 218,587 32,216 Costs of revenues (45,859) (48,017) (7,077) (86,805) (94,910) (13,988) Sales and marketing expenses (27,210) (29,668) (4,373) (60,613) (63,441) (9,350)General and administrative expenses (1,532) (2,342) (345) (3,191) (3,921) (578)Research and development expenses (3,591) (4,567) (673) (7,169) (8,985) (1,324)Total operating expenses (32,333) (36,577) (5,391) (70,973) (76,347) (11,252) Operating profit 25,793 27,764 4,092 41,879 47,330 6,976 Interest and investment income, net 10,423 13,505 1,990 10,646 12,873 1,897 Foreign exchange loss (799) (558) (82) (1,041) (703) (104)Other income/(loss), net 119 (7,399) (1,090) 3,380 (9,430) (1,390) Profit before income tax and share of results of equity investees 35,536 33,312 4,910 54,864 50,070 7,379 Share of results of equity investees 37 (38) (6) (68) (134) (20)Income tax expenses (4,819) (6,092) (898) (9,300) (10,207) (1,504)Net income 30,754 27,182 4,006 45,496 39,729 5,855 PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in millions of RMB and US$, except for per share data) For the three months ended June 30,
For the six months ended June 30,
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net income 30,754 27,182 4,006 45,496 39,729 5,855 Net income attributable to ordinary shareholders 30,754 27,182 4,006 45,496 39,729 5,855 Earnings per ordinary share: -Basic 5.50 4.83 0.71 8.16 7.07 1.04 -Diluted 5.19 4.61 0.68 7.67 6.73 0.99 Earnings per ADS (4 ordinary shares equals 1 ADS): -Basic 22.01 19.32 2.85 32.63 28.27 4.17 -Diluted 20.75 18.45 2.72 30.69 26.90 3.96 Weighted-average number of ordinary shares outstanding (in millions): -Basic 5,588 5,627 5,627 5,578 5,622 5,622 -Diluted 5,928 5,894 5,894 5,930 5,907 5,907 PDD HOLDINGS INC.
NOTES TO FINANCIAL INFORMATION
(Amounts in millions of RMB and US$)
For the three months ended June 30,
For the six months ended June 30,
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenues - Online marketing services and others 55,703 57,637 8,494 104,425 107,573 15,855 - Transaction services 48,282 54,721 8,066 95,232 111,014 16,361 Total 103,985 112,358 16,560 199,657 218,587 32,216 PDD HOLDINGS INC.
NOTES TO FINANCIAL INFORMATION
(Amounts in millions of RMB and US$)
For the three months ended June 30,
For the six months ended June 30,
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Share-based compensation expenses included in: Costs of revenues 65 46 7 122 74 11 Sales and marketing expenses 485 319 47 1,122 680 100 General and administrative expenses 865 645 95 1,789 1,352 199 Research and development expenses 540 297 44 1,096 725 107 Total 1,955 1,307 193 4,129 2,831 417 PDD HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions of RMB and US$)
For the three months ended June 30, For the six months ended June 30, 2025
2026
2025
2026
RMB RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net cash generated from operating activities 21,642 25,670 3,783 37,159 42,115 6,207 Net cash used in investing activities (27,022) (19,974) (2,944) (33,406) (17,892) (2,638)Net cash generated from financing activities -* -* -* -* -* -*Effect of exchange rate changes on cash, cash
equivalents and restricted cash 22 1,242 184 (47) (763) (111) (Decrease)/increase in cash, cash equivalents and restricted cash (5,358) 6,938 1,023 3,706 23,460 3,458 Cash, cash equivalents and restricted cash at beginning of period 135,258 199,254 29,366 126,194 182,732 26,931 Cash, cash equivalents and restricted cash at end of period 129,900 206,192 30,389 129,900 206,192 30,389 * Absolute value is less than RMB1 million or US$1 million.
PDD HOLDINGS INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURES
(Amounts in millions of RMB and US$, except for per share data)
For the three months ended June 30,
For the six months ended June 30,
2025
2026
2025
2026
RMB
RMB
US$
RMB
RMB
US$
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Operating profit 25,793 27,764 4,092 41,879 47,330 6,976 Add: Share-based compensation expenses 1,955 1,307 193 4,129 2,831 417 Non-GAAP operating profit 27,748 29,071 4,285 46,008 50,161 7,393 Net income attributable to ordinary shareholders 30,754 27,182 4,006 45,496 39,729 5,855 Add: Share-based compensation expenses 1,955 1,307 193 4,129 2,831 417 Non-GAAP net income attributable to ordinary shareholders 32,709 28,489 4,199 49,625 42,560 6,272 Non-GAAP diluted weighted-average number of ordinary shares outstanding (in millions) 5,928 5,894 5,894 5,930 5,907 5,907 Diluted earnings per ordinary share 5.19 4.61 0.68 7.67 6.73 0.99 Add: Non-GAAP adjustments to earnings per ordinary share 0.33 0.22 0.03 0.70 0.47 0.07 Non-GAAP diluted earnings per ordinary share 5.52 4.83 0.71 8.37 7.20 1.06 Non-GAAP diluted earnings per ADS 22.07 19.33 2.85 33.47 28.82 4.24
Chinese e-commerce discounter PDD Holdings (PDD.O) reported an 8% rise in second-quarter revenue on Monday that missed market estimates as fierce competition in China and mounting regulatory pressures overseas weighed on growth.
The operator of Pinduoduo in China and Temu internationally posted revenue of 112.36 billion yuan ($15.7 billion) for the three months ended June 30, below analysts' average estimate of 116.35 billion yuan, according to LSEG data.
Net income attributable to ordinary shareholders fell 12% to 27.2 billion yuan.
Its shares were up 4.6% in volatile pre-market trading in New York.
PDD competes with Alibaba's (9988.HK) Taobao and Tmall, JD.com (9618.HK) and ByteDance-owned Douyin through discounts, subsidies and incentives aimed at attracting consumers and merchants.
But weak consumer confidence, concerns over job security and a prolonged property downturn have kept shoppers cautious, fuelling a price war across China's e-commerce sector and squeezing margins.
Consumer spending remained subdued even during this year's "618" shopping festival, one of China's largest online sales events, despite weeks of promotions and discounts.
PDD has stepped up spending on logistics and merchant support programmes to lower fulfilment costs and improve value for consumers, raising investor concerns that profitability could come under further pressure.
REGULATORY PRESSURES
Temu, meanwhile, faces increasing scrutiny in some of its largest overseas markets.
The platform built its international business by shipping low-cost goods directly from Chinese suppliers to overseas consumers, but has been hit by U.S. tariffs on Chinese imports and the end of duty-free treatment for low-value parcels.
Higher shipping and compliance costs have forced some merchants to raise prices, potentially dampening demand among price-sensitive shoppers in the United States and Europe.
Low-value e-commerce goods have also attracted scrutiny, with shipments declining in recent months as changes to trade rules and tariffs disrupted cross-border sales.
In Europe, policymakers have stepped up efforts to curb the influx of inexpensive goods from China through platforms including Temu, Shein and Alibaba's AliExpress. The European Union's newly instituted fee on small parcels imported directly from China is set to increase costs for sellers and consumers alike, industry analysts say.
The added costs threaten to erode Temu's price advantage and could make it harder for the company to sustain the rapid international growth that has helped fuel investor enthusiasm for PDD.
PDD Holdings heads into second-quarter earnings on Monday with Wall Street cautious about how quickly revenue growth can translate into stronger profits.
Analysts expect roughly $17.1 billion in revenue and adjusted earnings of about $2.75 per ADS. PDD shares closed Friday at $88.38, down 1.3%, after post-Q1 price-target cuts.
The shift is not outright bearishness. Temu is expanding internationally and PDD remains one of China’s largest e-commerce platforms.
The concern is that heavy investment and weak Chinese consumption have made near-term earnings difficult to forecast.
First-quarter revenue rose 11% year over year to 106.2 billion yuan, but adjusted net income fell 17% to 14.1 billion yuan.
Sales and marketing expenses reached 33.8 billion yuan, roughly 32% of revenue, as PDD continued investing across domestic and overseas markets.
That disconnect is now central to Monday’s report.
Macquarie analyst Ellie Jiang downgraded PDD to Neutral after the quarter and cut her target to $87 from $151.
According to StreetInsider, Jiang said the firm “struggle[s] to find tangible evidence to support a sustainable near-term earnings recovery.”
Macquarie cited lacklustre consumption, aggressive e-commerce competition and continued spending on supply chains and international expansion. It noted that sales and marketing costs had risen to 32% of revenue from 29% in 2025.
The issue is not whether PDD looks cheap. Investors are struggling to determine what level of sustainable earnings should underpin that valuation.
PDD also enters earnings with its home market under pressure.
Daiwa downgraded the stock to Hold in June and cut its target to $80 from $145 after China’s 6.18 shopping festival “delivered a negative surprise.”
Overall festival gross merchandise value rose just 0.9% year over year, compared with 15% growth in 2025. Daiwa described Chinese e-commerce consumption as “weak” and the macro backdrop as “tough.”
That makes Temu’s international expansion important.
Temu can offset slower domestic growth, but building overseas scale requires spending on customer acquisition, logistics, merchant incentives and localisation.
The question is whether the economics of that growth are improving quickly enough to stop international expansion from consuming an outsized share of group profits.
Not every analyst sees PDD’s higher investment as structural deterioration.
Citi analyst Alicia Yap retained a Buy rating after the first quarter, although she cut her target to $123 from $142.
According to TipRanks, Citi attributed the revenue disappointment partly to merchant subsidies and stepped-up investment in supply chains and first-party brands.
The bank supports that strategy, arguing successful execution could improve product quality for Chinese shoppers and Temu customers overseas.
That captures the debate heading into earnings.
PDD must show how much it is spending to generate growth and when that spending can begin producing a stronger earnings payoff.
PDD Holdings Inc. (NASDAQ:PDD) will release its second quarter earnings report before the opening bell on Monday, Aug. 24.
Analysts expect the company to report quarterly earnings of $2.77 per share on revenue of $17.13 billion, according to Benzinga Pro.
On May 27, PDD Holdings reported a year-over-year decrease in first-quarter adjusted EPS results.
Shares of PDD Holdings fell 0.8% to close at $89.52 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
BNP Paribas analyst Colin Liu initiated coverage on the stock with an Underperform rating and a price target of $89 on June 16, 2026. This analyst has an accuracy rate of 57%. Barclays analyst Jiong Shao downgraded the stock from Overweight to Equal-Weight and cut the price target from $165 to $89 on May 28, 2026. This analyst has an accuracy rate of 61%. Macquarie analyst Ellie Jiang downgraded the stock from Outperform to Neutral and decreased the price target from $151 to $87 on May 28, 2026. This analyst has an accuracy rate of 50%. Benchmark analyst Fawne Jiang maintained a Buy rating and cut the price target from $160 to $127 on May 28, 2026. This analyst has an accuracy rate of 65%. Citigroup analyst Alicia Yap maintained a Buy rating and slashed the price target from $142 to $123 on May 27, 2026. This analyst has an accuracy rate of 59%. Trending
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PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed the most recent trading day at $86.94, moving +2.54% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.52%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.32%.
Shares of the company have appreciated by 0.77% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.74%, and the S&P 500's gain of 3.3%.
Investors will be eagerly watching for the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.85, signifying a 7.47% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $17.13 billion, indicating a 18.04% upward movement from the same quarter last year.
PDD's full-year Zacks Consensus Estimates are calling for earnings of $10.37 per share and revenue of $70.74 billion. These results would represent year-over-year changes of +0.1% and +16.67%, respectively.
It is also important to note the recent changes to analyst estimates for PDD Holdings Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PDD Holdings Inc. Sponsored ADR is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, PDD Holdings Inc. Sponsored ADR is currently exchanging hands at a Forward P/E ratio of 8.18. This indicates a discount in contrast to its industry's Forward P/E of 19.07.
Investors should also note that PDD has a PEG ratio of 0.65 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.16 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 146, positioning it in the bottom 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
DUBLIN and SHANGHAI, Aug. 17, 2026 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD) today announced that it will report its unaudited financial results for the second quarter ended June 30, 2026, before U.S. markets open on Monday, August 24, 2026.
The Company’s management will hold an earnings conference call at 7:30 AM ET on August 24, 2026 (12:30 PM IST and 7:30 PM HKT on the same day).
The conference call will be webcast live at https://investor.pddholdings.com/investor-events. The webcast will be available for replay at the same website following the conclusion of the call.
About PDD Holdings:
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities.
PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed the most recent trading day at $93.00, moving +1.35% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.32%.
Heading into today, shares of the company had gained 7.79% over the past month, outpacing the Retail-Wholesale sector's gain of 7.55% and the S&P 500's gain of 3.42%.
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 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.
Investors should also take note of any recent adjustments to analyst estimates for PDD Holdings Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PDD Holdings Inc. Sponsored ADR is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note PDD Holdings Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 8.85. This denotes a discount relative to the industry average Forward P/E of 18.55.
We can also see that PDD currently has a PEG ratio of 0.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 34% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Cetera Investment Advisers lifted its position in PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD – Free Report) by 107.0% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 22,493 shares of the company’s stock after acquiring an additional 11,628 shares during the quarter. Cetera Investment Advisers’ holdings in PDD were worth $2,298,000 as of its most recent filing with the SEC.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Binnacle Investments Inc raised its stake in PDD by 281.7% during the 3rd quarter. Binnacle Investments Inc now owns 271 shares of the company’s stock valued at $36,000 after purchasing an additional 200 shares during the period. Smartleaf Asset Management LLC raised its position in PDD by 230.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 377 shares of the company’s stock valued at $43,000 after buying an additional 263 shares during the period. Wexford Capital LP purchased a new stake in PDD in the 3rd quarter worth about $44,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in PDD during the 4th quarter worth about $44,000. Finally, Larson Financial Group LLC boosted its position in PDD by 720.4% during the 3rd quarter. Larson Financial Group LLC now owns 402 shares of the company’s stock worth $53,000 after acquiring an additional 353 shares during the period. Institutional investors and hedge funds own 39.83% of the company’s stock.
Wall Street Analysts Forecast Growth Several research analysts have weighed in on PDD shares. Arete Research raised PDD from a “neutral” rating to a “buy” rating and set a $121.00 target price on the stock in a research report on Friday, April 17th. Zacks Research cut shares of PDD from a “hold” rating to a “strong sell” rating in a report on Monday, July 27th. Nomura downgraded PDD from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 28th. Sanford C. Bernstein cut their target price on shares of PDD from $132.00 to $110.00 and set a “market perform” rating for the company in a research report on Wednesday, May 27th. Finally, BNP Paribas Exane assumed coverage on PDD in a research note on Monday, June 15th. They set an “underperform” rating and a $89.00 target price for the company. Seven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $124.64.
Check Out Our Latest Analysis on PDD
PDD Stock Up 1.0% PDD stock opened at $91.76 on Friday. The business has a 50 day moving average price of $83.65 and a two-hundred day moving average price of $94.79. PDD Holdings Inc. Sponsored ADR has a 12 month low of $71.94 and a 12 month high of $139.41. The stock has a market cap of $130.61 billion, a price-to-earnings ratio of 9.91, a price-to-earnings-growth ratio of 0.75 and a beta of 0.02.
PDD (NASDAQ:PDD – Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The company reported $1.38 earnings per share for the quarter, missing the consensus estimate of $2.40 by ($1.02). The firm had revenue of $15.41 billion for the quarter, compared to analyst estimates of $15.92 billion. PDD had a return on equity of 24.32% and a net margin of 21.86%.PDD’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period in the previous year, the business posted $1.57 EPS. On average, analysts expect that PDD Holdings Inc. Sponsored ADR will post 9.7 earnings per share for the current fiscal year.
About PDD (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.
Featured Stories Five stocks we like better than PDD Quantum Earnings Week: Winners and Losers Are Finally Emerging Axon’s Post-Earnings Pullback May Be More About Valuation Than Growth Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish Want to see what other hedge funds are holding PDD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD – Free Report).
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In the latest close session, PDD Holdings Inc. Sponsored ADR (PDD - Free Report) was up +1.8% at $90.15. The stock's performance was ahead of the S&P 500's daily gain of 1.48%. Elsewhere, the Dow gained 1.32%, while the tech-heavy Nasdaq added 2.13%.
Shares of the company witnessed a gain of 7.49% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 7.19%, and the S&P 500's gain of 0.19%.
The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. On that day, PDD Holdings Inc. Sponsored ADR is projected to report earnings of $2.85 per share, which would represent a year-over-year decline of 7.47%. Alongside, our most recent consensus estimate is anticipating revenue of $17.13 billion, indicating a 18.04% upward movement from the same quarter last 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.
Any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, PDD Holdings Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).
In terms of valuation, PDD Holdings Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 8.54. For comparison, its industry has an average Forward P/E of 18.1, which means PDD Holdings Inc. Sponsored ADR is trading at a discount to the group.
We can additionally observe that PDD currently boasts a PEG ratio of 0.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PDD's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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.
Shares of this company have returned +6.1% over the past month versus the Zacks S&P 500 composite's -0.5% change. The Zacks Internet - Commerce industry, to which PDD Holdings Inc. Sponsored ADR belongs, has gained 1.7% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
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 remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $10.37 points to a change of +0.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
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.
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 ForecastWhile 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.
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.
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.
In the latest trading session, PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed at $84.85, marking a +2.65% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.02% for the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the company had gained 7.98% outpaced the Retail-Wholesale sector's loss of 1.33% and the S&P 500's gain of 0.77%.
The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. On that day, PDD Holdings Inc. Sponsored ADR is projected to report earnings of $2.85 per share, which would represent a year-over-year decline of 7.47%. Simultaneously, our latest consensus estimate expects the revenue to be $17.13 billion, showing a 18.04% escalation compared to the year-ago quarter.
PDD's full-year Zacks Consensus Estimates are calling for earnings of $10.37 per share and revenue of $70.74 billion. These results would represent year-over-year changes of +0.1% and +16.67%, respectively.
Investors should also note any recent changes to analyst estimates for PDD Holdings Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #3 (Hold).
In the context of valuation, PDD Holdings Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 7.97. This denotes a discount relative to the industry average Forward P/E of 16.29.
Also, we should mention that PDD has a PEG ratio of 0.63. 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 was holding an average PEG ratio of 1.11 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
Should You Invest $1,000 in PDD Right Now?Before you consider PDD, you'll want to hear this.
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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.
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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.
