From Yahoo Finance: 2025-05-28 13:45:00

JPMorgan downgrades PDD Holdings Inc. (NASDAQ: PDD) to Neutral and lowers price target to $105 due to disappointing Q1 2025 results. Net profit drops 47% to 14.74 billion yuan, missing estimates. Revenue grows 10% to 95.67 billion yuan, falling short of expectations. PDD margins decline to 19% from 36%.

Analysts predict PDD shares will consolidate until Q2 2025 results in August. Concerns about trade tariffs impacting revenue growth persist. Company faces challenges in scaling Temu shopping platform in the US. Tensions with the US lead to price increases on the platform.

PDD Holdings owns Pinduoduo platform and Temu, an online platform for merchants. Company faces setbacks in global expansion due to trade tariffs. While PDD shows potential, other AI stocks may offer better returns. Analysts recommend exploring alternatives for higher upside potential.

JPMorgan analysts express caution over PDD Holdings’ global ambitions. Company faces hurdles with trade tariffs affecting revenue growth. PDD must navigate challenges to expand in international markets. AI stocks with lower downside risk may offer better investment opportunities.



Read more at Yahoo Finance: JPMorgan Cuts PDD Holdings (PDD) Price Target on Growth Concerns