From Yahoo Finance: 2025-05-29 18:00:00

PDD Holdings (PDD) reported weaker quarterly results, leading Bank of America analyst to lower price target to $120 and maintain “Hold” rating. Slowdown in transaction revenue growth and decline in adjusted net profits attributed to substantial investments in platform ecosystem affecting short-term profitability.

Adjusted operating profit for PDD decreased by 36% year-over-year, with net profit declining by 45%. Factors contributing to weaker performance included cut in merchant fees, lower trade-in subsidies benefits, and impact of trade policies on U.S. market. Domestic marketplace earnings declined despite solid growth.

Analyst anticipates improvement in upcoming quarters as trends reverse, but expects earnings to remain pressured by recent investments. PDD Holdings operates digital marketplaces including Pinduoduo and Temu. Consider exploring AI stocks with potentially higher returns and limited downside risk.

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Read more: BofA Cuts PDD Holdings (PDD) Target to $120, Maintains Hold