PDD Holdings (PDD) AI Stock Analysis

• Market Cap: $157.65B
• Dividend Yield: N/A
• Average Volume (3M): 7.77M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.92
• Revenue Growth: 11.25%
• EPS Growth: -7.28%
• Country: US
• Employees: 23,465
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 2.97
• Shares Outstanding: 1,419,646,500
• 10 Day Avg. Volume: 9,742,387
• 30 Day Avg. Volume: 7,768,238
• PEG Ratio: 0.10
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 8.10
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 0.54
• Enterprise Value/Ebitda: 1.25
• 1Y Price Target: $144.35
• Price Target Upside: 27.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $124.00 ▲(9.50% Upside)

PDD Holdings' overall stock score reflects strong financial performance and a reasonable valuation, offset by bearish technical indicators and challenges highlighted in the earnings call. The company's strategic investments and global expansion efforts are promising for long-term growth, but short-term pressures from competition and regulatory challenges remain significant risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Global Business Expansion

Successful global expansion diversifies revenue streams and reduces dependency on domestic markets, enhancing resilience against local economic fluctuations.

Strong Cash Flow

Robust cash flow generation supports ongoing investments and provides financial flexibility for strategic initiatives and potential downturns.

Negative Factors

Operating Margin Decline

Declining margins suggest rising operational costs and competitive pressures, which could impact profitability and long-term financial health.

Regulatory Challenges

Regulatory challenges can lead to increased compliance costs and operational disruptions, affecting the company's ability to operate efficiently.

Fluctuating Financial Performance

Fluctuating financial performance can create uncertainty in earnings predictability, impacting investor confidence and strategic planning.

PDD Holdings Business Overview & Revenue Model

Company Description

PDD Holdings (PDD) is a Chinese multinational commerce group that operates through its flagship e-commerce platform, Pinduoduo. The company primarily engages in online retail, providing a variety of products ranging from groceries to electronics, while also leveraging social commerce features. PDD focuses on creating a cost-effective shopping experience by utilizing a unique group buying model that encourages users to collaborate in making purchases, thus driving volume and reducing costs. Its ecosystem includes a suite of services for merchants, facilitating seamless transactions and enhancing customer engagement.

How the Company Makes Money

PDD generates revenue primarily through its e-commerce platform by charging merchants for advertising services, including pay-per-click and display ads that increase visibility on the site. Additionally, the company earns money through transaction fees from sales made on its platform. Another key revenue stream comes from its membership program, which provides users with exclusive discounts and promotions, further incentivizing purchases. PDD also partners with various brands and retailers, enhancing its product offerings and driving traffic to its platform. The combination of advertising revenue, transaction fees, and membership subscriptions contributes significantly to the company's earnings.

PDD Holdings Financial Statement Overview

Summary

PDD Holdings exhibits strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage, and the company effectively utilizes equity to generate returns. However, the recent decline in free cash flow growth and slight decrease in profit margins warrant attention.

Income Statement

PDD Holdings has demonstrated strong revenue growth and profitability. The TTM (Trailing-Twelve-Months) revenue growth rate is positive, indicating a continued upward trajectory. Gross profit margins have slightly decreased from the previous year but remain robust. The net profit margin is healthy, reflecting efficient cost management. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, which could indicate rising operational costs.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio indicating conservative leverage. Return on equity is impressive, showcasing effective use of shareholder funds to generate profits. The equity ratio is solid, reflecting a stable financial position with a significant portion of assets financed by equity.

Cash Flow

PDD Holdings has a strong operating cash flow, but there is a notable decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is moderate, suggesting that cash generation from operations is aligned with reported earnings. The free cash flow to net income ratio remains high, indicating efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.54B	393.84B	247.64B	130.56B	93.95B	59.49B
Gross Profit	237.10B	239.94B	155.92B	99.10B	62.23B	40.21B
EBITDA	102.77B	109.13B	59.48B	32.63B	8.39B	-8.73B
Net Income	102.27B	112.43B	60.03B	31.54B	7.77B	-7.18B
Balance Sheet
Total Assets	613.72B	505.03B	348.08B	237.12B	181.21B	158.91B
Cash, Cash Equivalents and Short-Term Investments	423.77B	331.56B	217.21B	149.44B	92.94B	86.97B
Total Debt	10.67B	10.61B	10.17B	16.93B	12.76B	16.97B
Total Liabilities	222.32B	191.72B	160.84B	119.35B	106.10B	98.73B
Stockholders Equity	391.40B	313.31B	187.24B	117.77B	75.11B	60.18B
Cash Flow
Free Cash Flow	111.40B	120.96B	93.58B	6.40B	25.50B	28.15B
Operating Cash Flow	112.37B	121.93B	94.16B	7.03B	28.78B	28.20B
Investing Cash Flow	-75.51B	-118.36B	-55.43B	-3.24B	-35.56B	-38.36B
Financing Cash Flow	1.40M	1.16M	-8.96B	10.08M	-1.88B	51.80B

PDD Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 113.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDD, the sentiment is Negative. The current price of 113.24 is below the 20-day moving average (MA) of 131.58, below the 50-day MA of 131.12, and below the 200-day MA of 117.20, indicating a bearish trend. The MACD of -3.79 indicates Positive momentum. The RSI at 22.33 is Positive, neither overbought nor oversold. The STOCH value of 5.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PDD.

PDD Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	71 Outperform	$98.95B	47.64	40.65%	―	38.01%	44.52%
PDD	70 Outperform	$157.65B	11.82	30.03%	―	11.25%	-7.28%
JD	70 Outperform	$45.33B	9.77	13.68%	3.39%	16.54%	-3.61%
SE	69 Neutral	$5.98B	56.17	15.66%	―	35.85%	1336.48%
BABA	69 Neutral	$361.91B	17.29	15.22%	1.29%	5.48%	128.65%
CPNG	66 Neutral	$48.70B	126.17	8.73%	―	16.63%	-62.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

PDD Holdings Corporate Events

PDD Holdings Schedules Virtual Annual Meeting for December 2025

PDD Holdings Inc. has announced that its 2025 Annual General Meeting will be held virtually on December 19, 2025. The meeting will address the re-election of six directors and any other business matters. Shareholders are encouraged to vote, and the results will be disclosed shortly after the meeting. The company is also providing proxy materials online to reduce costs and environmental impact.

PDD Holdings Reports Q3 2025 Financial Results with Revenue Growth

PDD Holdings Inc. announced its unaudited financial results for the third quarter of 2025, reporting a 9% increase in total revenues to RMB108,276.5 million compared to the same quarter in 2024. The company’s net income attributable to ordinary shareholders rose by 17% to RMB29,328.2 million, driven by growth in online marketing and transaction services. Despite the competitive environment and external uncertainties, PDD Holdings continues to invest in merchant support initiatives and ecosystem development, which may lead to fluctuations in financial results. The company also marked its tenth anniversary, emphasizing its long-term focus and commitment to the public interest.

PDD Holdings Reports Q2 2025 Financial Results with Revenue Growth Amid Profit Decline

PDD Holdings announced its unaudited financial results for the second quarter of 2025, revealing a 7% increase in total revenues to RMB103,984.8 million compared to the same quarter in 2024. Despite the revenue growth, the company experienced a 21% decrease in operating profit and a 4% decrease in net income attributable to ordinary shareholders. The company has been investing heavily in merchant support initiatives, which has impacted short-term profitability but is expected to foster long-term value creation.