According to a Chinese media report , PDD Holdings (NASDAQ: PDD ) is expanding its free delivery coverage to include countries such as Japan, Singapore, Taiwan, Korea, and Macau, with more countries expected to be included later. This announcement comes after PDD recently expandedAstrada Advisors delivers actionable recommendations that enhance portfolio performance and uncover alpha opportunities, supported by a strong track record in investment research at leading global investment banks. With expertise s ...

Stock Performance and Valuation - PDD Holdings' stock has declined by 33.4% in 2024, signaling concerns about the company's future prospects [1] - The company's forward P/E ratio of 7.98X is significantly below the industry average of 15.23X, reflecting market pessimism about its fundamental challenges [4][5] Financial Performance and Growth - Revenue growth slowed to 44% YoY in Q3 2024, down from 86% in Q2 2024, indicating a significant deceleration [1] - The Zacks Consensus Estimate for 2025 revenues is $65.75 billion, representing 19.8% growth from the previous year [12] - Earnings per share for 2025 are estimated at $12.21, suggesting 7.2% growth, but the estimate has been revised downward by 8.7% over the past 60 days [12] Operational Challenges - Management has acknowledged operational inefficiencies, including an aging team and lack of capabilities to leverage macroeconomic shifts [10] - The company faces higher operational costs compared to peers, which could persist into 2025 [10] Global Expansion and Regulatory Risks - PDD's international expansion through Temu faces challenges due to potential changes in de minimis rules by the Biden administration, which could eliminate tariff exemptions on key product categories [7] - Regulatory pressures and intense competition raise doubts about the sustainability of PDD's global growth strategy [7] Competitive Landscape - The Chinese e-commerce market is increasingly competitive, with pressure from established players like Amazon, eBay, and Alibaba, as well as new entrants [14] - PDD relies on price-based competition and promotional activities, which may not be sustainable as consumer preferences evolve and competitors innovate [14] Strategic Investments and Profitability - PDD is investing heavily in initiatives like the RMB10 billion merchant support program, which will pressure margins [11] - Management has warned that profitability will trend lower over the long term due to these investments and the unsustainability of high revenue growth [11] Conclusion - Despite PDD's strong market position and significant cash reserves of RMB308.5 billion, the combination of decelerating growth, margin pressure, and operational inefficiencies suggests continued underperformance into 2025 [15] - The company's heavy investment requirements and management's admissions of business model limitations justify the current valuation discount [15]

Investment Rating - Maintains a "Buy" rating for the company [1][4] Core Views - The company's main site revenue growth has slowed due to intense competition in the e-commerce industry [1] - The company is increasing investments in the supply side, which may pressure short-term profitability but is expected to support long-term growth [1][13] - The company's overseas market is steadily expanding, with TEMU now available in over 80 countries and regions [6] - The semi-hosted model introduced in North America and later in Europe, Japan, and South Korea is expected to partially mitigate overseas regulatory and policy risks [6] - The company's 24Q3 revenue grew by 44% YoY to 99.4 billion yuan, with marketing service revenue increasing by 24% and transaction service revenue growing by 72% [11] - The company's 24Q3 non-GAAP net profit increased by 61% YoY to 27.46 billion yuan, with a non-GAAP net margin of 27.6% [11] Revenue and Profit Forecasts - The company's 2024-2025 revenue forecasts are revised down to 3970/4771 billion yuan (previously 3990/4863 billion yuan), representing YoY growth of 60%/20% [1] - The company's 2024-2025 non-GAAP net profit forecasts are revised down to 1231/1380 billion yuan (previously 1282/1553 billion yuan), representing YoY growth of 81%/12% [1] Overseas Expansion - TEMU has been launched in over 80 countries and regions, with the semi-hosted model introduced in North America, Europe, Japan, and South Korea [6] - The company is focusing on compliance and building a healthy business environment for long-term overseas development [6] 24Q3 Performance - 24Q3 revenue grew by 44% YoY to 99.4 billion yuan, driven by a 24% increase in marketing service revenue and a 72% increase in transaction service revenue [11] - 24Q3 non-GAAP net profit increased by 61% YoY to 27.46 billion yuan, with a non-GAAP net margin of 27.6% [11] - The company's revenue growth was impacted by increased competition and internal investments [11][13]

PDD Holdings Inc. Sponsored ADR (PDD) 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 -15.1% over the past month versus the Zacks S&P 500 composite's +3.6% change. The Zacks Diversified Operations industry, to which PDD Holdings Inc. Sponsored ADR belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be heade ...

The Chinese company, however, faces increased scrutiny from U.S. officials, and risks posed by tariffs which the incoming Trump administration has promised to raise.Temu, which ships cheap goods from China, first entered the U.S. market in 2022. It has taken the market by storm, putting pressure on incumbent heavyweight Amazon .Apple's iOS accounts for over 56% of U.S. mobile phone market, according to data from StatCounter.ByteDance's TikTok came in third in the ranking despite doubts over its ability to c ...

PDD TodayPDDPDD$102.27 -2.39 (-2.28%) 52-Week Range$88.01▼$164.69P/E Ratio9.99Price Target$173.40Add to WatchlistDespite explosive revenue growth in 2024, PDD’s NASDAQ: PDD share price has not fared well. Shares are down 29% on the year as of the December 12 close. Shares were crushed following the company’s past two earnings releases after missing estimates on sales. Metrics now show the stock is much cheaper than at 2024's start. So, have expectations been reset to a more reasonable level to warrant a re ...

In the context of China’s 36-months long-running bear market, PDD Holdings Inc. (NASDAQ: PDD ) formerly known as Pinduoduo, has seen its stock price decrease by 50% since its peak in February 2021 despite outstanding operational performance. As we willMy aim is to be an investor that beats the S&P 500 in the long-term with the goal to become financially independent by 2035. My 10X goal is to manage 10m$ investment portfolio, focused on stocks and real estate. I’m not here to predict the next meme stock or g ...

Yesterday, Seeking Alpha News reported that PDD Holdings (NASDAQ: PDD ) and Shein were both preparing for the Holiday season with deep discounts on toys and products offered by U.S. vendors. TheAnalyst’s Disclosure: I/we have a beneficial long position in the shares of BABA, PDD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship wi ...

PDD Holdings (PDD) has witnessed a decline of 5.1% since its third-quarter earnings release on Nov. 21, signaling growing investor concerns about the company's future prospects. While the Chinese e-commerce giant reported 44% year-over-year revenue growth to RMB99.4 billion ($14.16 billion), the sequential growth momentum has notably decelerated, raising red flags about the company's ability to maintain its historic growth trajectory.Share Price MovementImage Source: Zacks Investment ResearchIntensifying Co ...

证券研究报告·海外公司点评·互联网电商 拼多多（PDD） 2024Q3 业绩点评：收入利润均低于预期，投 入增加导致盈利能力有所下滑 2024 年 11 月 27 日 买入（维持） | --- | --- | --- | --- | --- | --- | |-------------------------------|---------|----------------------------|---------|-------------------|---------| | [ 盈利预测与估值 Table_EPS] | 2022A | 2023A | 2024E | 2025E | 2026E | | 营业总收入（百万元） | 130,558 | 247,639 | 400,896 | 510,307 | 611,012 | | 同比（ % ） | 39.0% | 89.7% | 61.9% | 25.9% | 19.7% | | Non-GAAP 净利润 | | 39,529.7 67,899.2 12,119.3 | | 14,862.7 18,171.0 | | | 同比（ % ） | 185. ...