PDD Holdings Inc. (NASDAQ: $PDD) is a multinational commerce conglomerate that owns and manages a diverse portfolio of businesses. The company is dedicated to integrating businesses and individuals into the digital economy, fostering local communities, and providing small businesses with enhanced productivity and new opportunities.
PDD Holdings has established a comprehensive network of sourcing, logistics, and fulfillment capabilities to support its various business ventures.
Founded in 2015 by Chinese entrepreneur and software engineer Colin Huang, Pinduoduo is a notable entity under PDD Holdings. On June 7, 2018, Pinduoduo took action by investigating and closing down stores, as well as removing listings that violated its platform policy against pornography and violence. This response followed an earlier report by Legal Evening News.
On January 20, 2019, Pinduoduo reported a case of theft by hackers to the police, who exploited a system loophole to steal tens of millions of Yuan worth of vouchers. During the initial COVID-19 lockdown in China in 2020, Pinduoduo initiated a program to aid rural Chinese farmers in selling their produce online, offering an alternative to traditional in-person marketplaces.
In August 2020, Pinduoduo introduced Duo Duo Maicai, a service allowing consumers to pre-order groceries for pickup at designated locations.
Notably, on July 5, 2022, a Shanghai court dismissed a lawsuit accusing Pinduoduo of cheating in a promotional event. In September 2022, Pinduoduo’s sister company, Temu, was launched in the U.S. by PDD Holdings. Furthermore, in 2023, PDD Holdings underwent a legal domicile change from Shanghai to Dublin.
PDD Holdings Inc. Stock Price Today
As of November 29, 2023, the current stock price for Pinduoduo (PDD) is $141.68 per share, reflecting a rise of $2.68 or 1.93% compared to the previous close at $139.001. The stock opened at $138.72, reached a peak of $141.86, and touched a low of $138.64 throughout the day. The total trading volume amounted to 12,039,269 shares, surpassing the average daily volume of 8,097,096 shares.
Why PDD Holdings Stock Was Moving Higher Again Today
PDD Holdings’ a Chinese e-commerce company and the owner of discount-oriented platforms Pinduoduo and Temu, saw its shares rise for the second consecutive day.
This upward momentum followed a substantial surge in the stock after an impressive earnings report, showcasing robust revenue growth even amid a challenging economic climate. On Wednesday, PDD’s stock continued to climb as Wall Street analysts raised their price targets for the company.
The boost was further fueled by remarks from Alibaba co-founder Jack Ma, who highlighted the competitive threat posed by Pinduoduo in an internal company communication.
As of 10:54 a.m. ET, PDD stock was up 1%, having reached a peak increase of 4.2% earlier in the session.
Following Tuesday morning’s robust earnings report, at least seven analysts not only raised their price targets but also maintained buy-equivalent ratings on PDD. Analysts specifically lauded the rapid growth of Temu, the budget-focused e-commerce platform targeting international markets, prompting some to revise their stock estimates upwards for the coming years.
PDD third-quarter Revenue Tops Estimates
PDD Holdings (NASDAQ:PDD) witnessed a premarket surge in U.S. trading on Tuesday following the release of better-than-expected sales results for the third quarter by the company formerly known as Pinduoduo.
For the three months ending September 30, the company reported revenue of 68.84 billion yuan ($9.44B), surpassing Bloomberg consensus estimates of 54.87 billion yuan. Additionally, adjusted earnings per American depositary receipts reached 11.61 yuan ($1.55), exceeding projections of 8.81 yuan.
These results coincide with the increasing popularity of PDD’s Temu e-commerce app, launched in 2022. The app, known for offering heavily discounted items shipped directly from China, has gained substantial traction and is projected to generate over $16 billion in revenue this year, despite facing stiff competition from Chinese low-price fast-fashion retailer Shein, as per analysts cited by Reuters.
Is PDD undervalued?
PDD Holdings’ stock appears to be reasonably undervalued, as indicated by GuruFocus’ valuation approach. The GF Value assesses the fair value of the stock by considering historical multiples, an internal adjustment factor derived from the company’s past business growth, and analyst projections for future business performance.
What is the target price for PDD Holdings?
Out of the 38 analysts providing 12-month price forecasts for PDD Holdings Inc, the median target stands at 120.05. The high estimate is 159.06, and the low estimate is 79.03. The median estimate reflects a 10.15% increase from the most recent price of 108.99.
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