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PDD Holdings Inc. (PDD)



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Upturn Advisory Summary
03/27/2025: PDD (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -4.64% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 172.71B USD | Price to earnings Ratio 11.7 | 1Y Target Price 151.09 |
Price to earnings Ratio 11.7 | 1Y Target Price 151.09 | ||
Volume (30-day avg) 9995676 | Beta 0.68 | 52 Weeks Range 88.01 - 164.69 | Updated Date 03/27/2025 |
52 Weeks Range 88.01 - 164.69 | Updated Date 03/27/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 10.63 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-03-18 | When Before Market | Estimate 19.6726 | Actual 20.15 |
Profitability
Profit Margin 28.55% | Operating Margin (TTM) 23.14% |
Management Effectiveness
Return on Assets (TTM) 15.89% | Return on Equity (TTM) 44.92% |
Valuation
Trailing PE 11.7 | Forward PE 9.5 | Enterprise Value 125861575589 | Price to Sales(TTM) 0.44 |
Enterprise Value 125861575589 | Price to Sales(TTM) 0.44 | ||
Enterprise Value to Revenue 2.32 | Enterprise Value to EBITDA 6.88 | Shares Outstanding 1388770048 | Shares Floating 2991990469 |
Shares Outstanding 1388770048 | Shares Floating 2991990469 | ||
Percent Insiders - | Percent Institutions 31.91 |
Analyst Ratings
Rating 4.52 | Target Price 145.58 | Buy 6 | Strong Buy 29 |
Buy 6 | Strong Buy 29 | ||
Hold 7 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
PDD Holdings Inc.

Company Overview
History and Background
PDD Holdings Inc., formerly known as Pinduoduo Inc., was founded in 2015 by Colin Huang. It rapidly grew to become a leading e-commerce platform in China, known for its innovative 'team purchase' model and focus on agricultural products. In 2023, it rebranded to PDD Holdings Inc. and shifted its focus to global expansion with the launch of Temu.
Core Business Areas
- Pinduoduo (China): E-commerce platform in China connecting consumers with a wide range of products, particularly agricultural goods through a group buying model.
- Temu (Global): E-commerce platform operating globally, offering a wide variety of products at competitive prices, with a focus on affordability and direct-from-manufacturer sourcing.
Leadership and Structure
Lei Chen is the Chairman and Co-CEO. Jiazhen Zhao is the Co-CEO. The company operates with a relatively flat organizational structure, encouraging innovation and rapid decision-making.
Top Products and Market Share
Key Offerings
- Apparel and Accessories (Temu): A wide range of clothing, shoes, and accessories offered on Temu globally. Temu holds a growing market share in the fast fashion e-commerce sector competing with SHEIN and Amazon (AMZN). Accurate market share data is dynamic and varies by region.
- Household Goods (Temu): Variety of household items like kitchenware, home decor, and cleaning supplies available on Temu. Competitors include Amazon (AMZN), Walmart (WMT) and AliExpress. Market share information is variable and region dependent.
- Agricultural Products (Pinduoduo): Pinduoduo's core offering in China, connecting farmers directly with consumers. Competitors include JD.com (JD) and Alibaba (BABA). Pinduoduo has a significant share of the online agriculture market in China.
Market Dynamics
Industry Overview
The e-commerce industry is highly competitive and dynamic, characterized by increasing globalization, rapid technological advancements, and shifting consumer preferences. Mobile commerce and social commerce are significant trends.
Positioning
PDD Holdings Inc. is positioned as a value-driven e-commerce player, leveraging its supply chain efficiencies and innovative business models to offer competitive prices. It appeals to price-sensitive consumers and leverages social commerce to drive growth.
Total Addressable Market (TAM)
The global e-commerce TAM is estimated to be in the trillions of USD. PDD Holdings Inc. is positioned to capture a significant share of this market through its expansion into new geographies and product categories.
Upturn SWOT Analysis
Strengths
- Strong user base in China
- Innovative team purchase model
- Efficient supply chain
- Aggressive pricing strategy
- Rapid growth of Temu
Weaknesses
- Dependence on price-sensitive consumers
- Concerns about product quality and authenticity
- Geographic concentration (historically China)
- Potential regulatory risks in China and globally
- High marketing expenses
Opportunities
- International expansion (Temu)
- Diversification of product categories
- Investment in logistics and infrastructure
- Partnerships with brands and suppliers
- Expansion into new markets
Threats
- Intense competition from established e-commerce giants
- Changing consumer preferences
- Economic slowdown
- Geopolitical risks
- Increased regulatory scrutiny
Competitors and Market Share
Key Competitors
- AMZN
- BABA
- JD
Competitive Landscape
PDD Holdings Inc. competes with established e-commerce giants like Amazon and Alibaba. Its competitive advantages include its focus on value, innovative business models, and strong user base in China. However, it faces challenges related to product quality, regulatory risks, and international expansion.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: PDD Holdings Inc. has experienced rapid revenue growth driven by the popularity of Pinduoduo in China and the recent launch of Temu globally. Its growth has been fueled by aggressive marketing and promotional activities.
Future Projections: Analyst estimates suggest continued revenue growth for PDD Holdings Inc., driven by the expansion of Temu and the ongoing strength of Pinduoduo. Profitability is expected to improve as the company achieves greater scale and efficiency.
Recent Initiatives: Recent initiatives include the global expansion of Temu, investments in logistics infrastructure, and partnerships with international brands.
Summary
PDD Holdings Inc. is a strong player in the e-commerce market, particularly in China. Its team purchase model and focus on value have driven rapid growth. The company's global expansion through Temu presents significant opportunities, but also challenges related to competition and regulatory compliance.
Similar Companies
- AMZN
- BABA
- JD
- SHOP
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About PDD Holdings Inc.
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2018-07-26 | General Counsel, Co-CEO & Chairman Mr. Lei Chen | ||
Sector Consumer Cyclical | Industry Internet Retail | Full time employees - | Website https://www.pddholdings.com |
Full time employees - | Website https://www.pddholdings.com |
PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. The company was incorporated in 2015 and is based in Dublin, Ireland.
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