PDD Holdings (PDD) remains a strong buy despite missing Q4'25 earnings and revenue estimates on Thursday amid fierce Chinese e-Commerce competition. PDD's Transaction Services, which includes results from Temu, saw 19% year-over-year top line growth, supporting robust profitability and a projected $17.5B operating income for FY 2026. Shares trade at a forward P/E of 7.1X, a 27% discount to historical averages, offering a compelling 14% earnings yield and significant revaluation potential.
PDD Holdings (PDD) is reiterated as a Strong Buy, supported by a fortress balance sheet and substantial reinvestment in its ecosystem. Despite a weak Q4 with lower net income and operating cash flow, PDD's financial strength enables continued expansion and potential shareholder returns. PDD's valuation remains compelling, with intrinsic value estimated well above the current level even when using conservative assumptions to account for the risk.
PDD Holdings Inc. (PDD) Q4 2025 Earnings Call Transcript
PDD Holdings Inc (NASDAQ:PDD) reported fourth-quarter revenue that broadly met market expectations but posted a decline in profit, missing analyst estimates as rising costs weighed on earnings. The owner of global discount platform Temu said revenue for the quarter rose 12% year-on-year to 123.9 billion yuan ($17.96 billion), roughly in line with analysts' expectations of 124.4 billion yuan, according to LSEG data.
The Chinese owner of shopping app Temu reported lower 11% lower profit in the final quarter of 2025, as its domestic e-commerce platform remained under pressure from competition.
China has pledged to expand the global "trade pie," while its exports have been booming so far this year.
In the most recent trading session, PDD Holdings Inc. Sponsored ADR (PDD) closed at $97.43, indicating a -3.27% shift from the previous trading day.
Bamco Inc. NY lifted its position in shares of PDD Holdings Inc. Sponsored ADR (NASDAQ: PDD) by 16.1% during the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 62,386 shares of the company's stock after purchasing an additional 8,643 shares during the period. Bamco
3G Capital Partners LP reduced its position in PDD Holdings Inc. Sponsored ADR (NASDAQ: PDD) by 76.5% in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 100,000 shares of the company's stock after selling 325,000 shares during the
In the closing of the recent trading day, PDD Holdings Inc. Sponsored ADR (PDD) stood at $104.86, denoting a +2.16% move from the preceding trading day.
Recently, Zacks.com users have been paying close attention to PDD Holdings Inc. Sponsored ADR (PDD). This makes it worthwhile to examine what the stock has in store.
PDD Holdings Inc. Sponsored ADR (PDD) closed at $100.71 in the latest trading session, marking a -2.05% move from the prior day.