PDD Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
PDD Holdings Inc is not a good buy for a beginner investor with a long-term focus at this moment. The stock is facing regulatory investigations, negative news sentiment, and bearish technical indicators. Despite strong financial growth in Q3 2025, the risks outweigh the potential rewards given the current environment.
The stock shows bearish moving averages (SMA_200 > SMA_20 > SMA_5), indicating a downward trend. RSI is neutral at 27.997, and the MACD histogram is positive but contracting. Key support lies at $100.574, which is close to the current pre-market price of $100.8, suggesting limited upside potential in the near term.
The company demonstrated strong financial growth in Q3 2025, with revenue up 8.98% YoY, net income up 17.40% YoY, and EPS up 16.55% YoY.
The Chinese government is investigating PDD for fraudulent deliveries and taxation issues, which has already caused a drop in its ADR price. Additionally, regulatory overhangs and reports of physical altercations with inspectors add significant risk. Analysts have lowered price targets and ratings, citing slowing domestic retail sales and higher expenses.
In Q3 2025, PDD achieved revenue growth of 8.98% YoY and net income growth of 17.40% YoY. However, gross margin dropped by 5.48% YoY, indicating potential profitability challenges.
Analyst sentiment is mixed to negative. Recent downgrades and lowered price targets reflect concerns about regulatory risks, slowing domestic growth, and margin pressures. Citi and Bernstein have both downgraded the stock or reduced price targets recently.
