Bear of the Day: PDD Holdings (PDD)
From Nasdaq: 2025-06-18 04:00:00
PDD Holdings (PDD), also known as Pinduoduo, is a multinational e-commerce company based in China. It operates under the Pinduoduo name in China and the ‘Temu’ umbrella internationally. PDD offers competitive prices through group buying and direct connections with agricultural producers.
PDD’s recent earnings disappointed, with a nearly 50% drop in net profit and missing Zacks Consensus Estimates by 37%. The company faces challenges from tariffs, a weak Chinese economy, and intense competition in the e-commerce market, impacting its performance.
PDD’s profit margins have also suffered, being cut in half since 2024. The company’s stock price is in a downtrend, showing relative weakness and forming a bear flag chart pattern. Despite its niche in the e-commerce landscape, PDD faces significant headwinds.
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