PDD Holdings is experiencing a sharp deceleration in its core business, with revenue growth slowing to 8.1% in 2026Q2 from triple-digit rates, while gross margins have compressed by 800 basis points from their 2024Q2 peak to 57.3%, suggesting the high-margin d...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has decelerated to 8.1% YoY in 2026Q2, while gross margins have contracted 800 basis points from their 2024Q2 peak to 57.3%, indicating structural margin pressure from the international Temu business.
PDD's stock may be undervalued, with fair value estimates around $266.49 and $223.81 based on DCF analyses.
Pinduoduo's domestic business is profitable with over 880 million active buyers, generating substantial revenue and free cash flow.
PDD holds approximately $69.5 billion in cash and investments, indicating strong institutional confidence and potential for capital returns.
PDD has experienced a recent decline of about 25%, raising concerns about its stock stability.
Temu's expansion faces geopolitical challenges, including potential U.S. tariffs and EU regulatory pressures.
Analysts expect more modest revenue growth from 2024 to 2027, facing competition from Alibaba and JD.com.
Trailing total returns as of 9/26/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 24, 2026 | $2.85+4.8% vs $2.72 | $16.5B-2.4% vs $16.9B |
Q2 2026 May 27, 2026 | $1.38-42.5% vs $2.40 | $15.4B-3.3% vs $15.9B |
Q2 2026 Mar 25, 2026 | $2.53-15.1% vs $2.98 | $17.7B-0.5% vs $17.8B |
Q4 2025 Nov 18, 2025 | $2.96+33.9% vs $2.21 | $15.2B-13.5% vs $17.6B |
Zacks.com users have recently been watching PDD Holdings Inc. Sponsored ADR (PDD) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Shares of PDD Holdings Inc. Sponsored ADR (NASDAQ: PDD - Get Free Report) have been assigned a consensus recommendation of "Hold" from the sixteen brokerages that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and five have given a
Shares of Alibaba Group (NYSE:BABA | BABA Price Prediction) are climbing in Friday morning trading, leading a broader lift across U.S.-listed Chinese internet names. Alibaba stock is up 3% to $111.39.
California State Teachers Retirement System increased its position in PDD Holdings Inc. Sponsored ADR (NASDAQ: PDD) by 5,977.1% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 22,016,773 shares of the company's stock after purchasing an additional 21,654,483 shares during
Benchmark PDD against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for PDD Holdings Inc. (PDD)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $77.57 | $110.41B | 7.98 | 9.65% | 22.66% | 26.86% | — | |
| $109.74 | $256.1B | 16.75 | 2.74% | 7.04% | 6.6% | — | |
| $26.51 | $37.22B | 13.80 | 12.97% | 1.12% | 5.08% | — | |
| $12.38 | $6.09B | 5.88 | -2.31% | 9.81% | 22.77% | — | |
| $99.55 | $59.76B | 39.50 | 36.38% | 5.91% | 13.37% | — | |
| $1752.61 | $88.85B | 44.49 | 39.06% | 5.3% | 26.54% | — |
PDD Holdings Inc. (PDD) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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PDD Holdings Inc. (PDD) stock FAQ — growth, dividends, profitability & financials explained
PDD Holdings Inc. (PDD) reported $448.53B in revenue for fiscal year 2025. This represents a 88742% increase from $504.9M in 2016.
PDD Holdings Inc. (PDD) grew revenue by 9.7% over the past year. This is steady growth.
Yes, PDD Holdings Inc. (PDD) is profitable, generating $110.28B in net income for fiscal year 2025 (22.7% net margin).
PDD Holdings Inc. (PDD) has a return on equity (ROE) of 26.9%. This is excellent, indicating efficient use of shareholder capital.
PDD Holdings Inc. (PDD) generated $117.09B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
