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 domestic platform is being diluted by lower-margin…
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 11/7/2026, 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 |
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.
The latest trading day saw PDD Holdings Inc. Sponsored ADR (PDD) settling at $80.17, representing a -1.85% change from its previous close.
Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD) and PDD Holdings Inc. (NASDAQ:PDD) are trading higher Monday after a report that China's central bank and securities regulator will meet to discuss tools designed to support the country's capital market.
Apple (NASDAQ:AAPL | AAPL Price Prediction) just gave a Chinese artificial intelligence (AI) model a place inside the iPhone, and China's internet stocks are reacting. Alibaba Group (NYSE:BABA) stock is at $102.85, up 5% in morning trading.
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 |
|---|---|---|---|---|---|---|---|
| $83.03 | $118.18B | 8.49 | 9.65% | 22.66% | 26.86% | — | |
| $109.45 | $255.42B | 16.60 | 2.74% | 7.04% | 6.6% | 1.92% | |
| $29.11 | $40.87B | 15.06 | 12.97% | 1.12% | 5.08% | 3.59% | |
| $13.86 | $6.82B | 6.54 | -2.31% | 9.81% | 22.77% | — | |
| $75.73 | $45.46B | 30.05 | 36.38% | 5.91% | 13.37% | — | |
| $1510.00 | $76.55B | 38.33 | 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 over the trailing twelve months. Revenue was $431.85B in fiscal year 2025. That is 85437% more than the $504.9M of fiscal year 2016.
PDD Holdings Inc. (PDD) grew revenue by 9.7% in fiscal year 2025, compared with the prior fiscal year.
Yes. PDD Holdings Inc. (PDD) earned $110.28B in net income over the trailing twelve months (a 24.6% net margin).
PDD Holdings Inc. (PDD) had a return on equity (ROE) of 26.9% in fiscal year 2025. That is well above the market's typical 10-15%.
PDD Holdings Inc. (PDD) generated $117.09B in free cash flow over the trailing twelve months.
