PDD Holdings (PDD)
NASDAQ:PDD
Top Page
PDD Holdings
(NASDAQ:PDD)
Select Model
Select Model
Rating:70Outperform
Price Target:
$111.00
▲(6.99% Upside)
Action:ReiteratedDate:11/21/25
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.
Negative Factors
Operating Margin Decline
Declining margins suggest rising operational costs and competitive pressures, which could impact profitability and long-term financial health.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Read all positive factors
PDD Holdings (PDD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$144.44B
Dividend YieldN/A
Average Volume (3M)7.01M
Price to Earnings (P/E)11.5
Beta (1Y)0.98
Revenue Growth12.53%
EPS Growth-6.43%
CountryUS
Employees23,465
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)2.59
Shares Outstanding1,419,646,500
10 Day Avg. Volume8,469,819
30 Day Avg. Volume7,010,185
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)3.13
Price to Sales (P/S)2.49
P/FCF Ratio8.10
Enterprise Value/Market Cap5.66
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda7.95
Forecast
1Y Price Target
$140.10Price Target Upside35.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)82.14
Revenue Forecast (FY)$493.49B
PDD Holdings Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
PDD generates revenue primarily through its e-commerce platform by charging merchants for advertising services and transaction fees. Key revenue streams include the sale of ads on its platform, which allows sellers to promote their products more p...
PDD Holdings Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business units or product lines, highlighting which areas drive growth and profitability, and where there might be opportunities or challenges.
Analyzes revenue from different business units or product lines, highlighting which areas drive growth and profitability, and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyPDD Holdings Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 22, 2026
Earnings Call Sentiment Neutral
The call presented a mix of constructive strategic progress and clear near-term execution and profit pressures. Positive elements include mid-to-high single-digit top-line growth (Q4 +12%, FY +10%), strong transaction-services growth (+19% Q4), a large cash balance (RMB 422.3B), and major strategic initiatives (RMB 100 billion support program and supply-chain transformation) that support long-term differentiation. Offsetting these are material increases in cost of revenues and operating expenses, softer operating cash flow, EPS declines, and heightened regulatory/geopolitical uncertainty for the global business. Management emphasizes a long-term investment horizon and expects short-term margin variability as it prioritizes supply-chain upgrades and ecosystem development.Positive Updates
Top-line Growth
Revenue of RMB 123.9 billion in Q4, up 12% year-over-year; full-year 2025 revenue RMB 431.8 billion, up 10% year-over-year.
Negative Updates
Rising Cost of Revenues and Operating Expenses
Total cost of revenues increased 15% in Q4 (RMB 55.2 billion vs RMB 47.8 billion) and rose 23% for the full year to RMB 188.8 billion, pressuring gross margins.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth
Revenue of RMB 123.9 billion in Q4, up 12% year-over-year; full-year 2025 revenue RMB 431.8 billion, up 10% year-over-year.
Read all positive updates
Company Guidance
Management reiterated guidance to prioritize deep, long‑term investment in the supply chain (including the RMB 100 billion support program and prior RMB 10 billion fee reductions) and a 3‑year strategy to “build another Pinduoduo,” while continuing pilots such as free delivery to villages and last‑mile networks (country‑level transfer warehouses and village pickup points in over 10 provinces/municipalities) and expanding standardized production in hundreds of regions and operations in nearly 100 markets; financially the company reported Q4 revenue RMB 123.9 billion (+12% YoY) and FY2025 revenue RMB 431.8 billion (+10%), Q4 online marketing revenue RMB 60.0 billion (+5%) and transaction services RMB 63.9 billion (+19%), Q4 total cost of revenues RMB 55.2 billion (+15%) and FY cost of revenues RMB 188.8 billion (+23%), Q4 GAAP operating expenses RMB 41.0 billion (non‑GAAP RMB 39.3 billion; non‑GAAP Opex 32% of revenues) and FY non‑GAAP Opex RMB 140.7 billion, Q4 non‑GAAP S&M RMB 34.0 billion (27% of revenues; FY RMB 123.3 billion), Q4 non‑GAAP R&D RMB 4.4 billion (GAAP RMB 5.0 billion), Q4 GAAP operating profit RMB 27.7 billion (non‑GAAP RMB 29.5 billion; non‑GAAP margin 24% vs 25% a year ago) and FY non‑GAAP operating profit RMB 102.6 billion (vs RMB 18.3 billion in 2024), Q4 net income attributable RMB 24.5 billion and FY RMB 99.4 billion (Q4 basic EPS RMB 17.50, diluted RMB 16.51; non‑GAAP diluted EPS Q4 RMB 17.69), Q4 operating cash flow RMB 24.1 billion and FY operating cash flow RMB 106.9 billion, and year‑end cash, cash equivalents and short‑term investments of RMB 422.3 billion.PDD Holdings Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
| 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
Positive
103.75
Price Trends
102.30
Positive
108.68
Negative
115.36
Negative
Market Momentum
-0.45
Negative
55.09
Neutral
48.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDD, the sentiment is Positive. The current price of 103.75 is above the 20-day moving average (MA) of 100.73, above the 50-day MA of 102.30, and below the 200-day MA of 115.36, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 48.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDD.
PDD Holdings Risk Analysis
PDD Holdings disclosed 86 risk factors in its most recent earnings report. PDD Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PDD Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $144.44B | 11.47 | 26.44% | ― | 12.53% | -6.43% | |
70 Outperform | $90.03B | 51.14 | 33.73% | ― | 38.01% | 44.52% | |
70 Outperform | $50.51B | 48.10 | 15.34% | ― | 35.85% | 1336.48% | |
69 Neutral | $254.57B | 36.81 | 8.82% | 1.31% | 5.14% | 50.76% | |
67 Neutral | $41.48B | 14.55 | 8.57% | 3.37% | 16.54% | -3.61% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $35.98B | 206.19 | 4.52% | ― | 16.63% | -62.54% |
* Consumer Cyclical Sector Average
PDD
PDD Holdings
103.75
9.60
10.20%
MELI
Mercadolibre
1,775.74
-204.92
-10.35%
JD
JD
29.05
-6.03
-17.18%
BABA
Alibaba
125.32
22.26
21.60%
SE
Sea
85.31
-33.78
-28.37%
CPNG
Coupang
19.68
-2.16
-9.89%
PDD Holdings Corporate Events
PDD Holdings Shareholders Back Full Board Slate at 2025 AGM
Dec 19, 2025
At its 2025 annual general meeting held on December 19, 2025, PDD Holdings Inc. reported that shareholders approved all six ordinary resolutions to re-elect board members Lei Chen, Jiazhen Zhao, Anthony Kam Ping Leung, Haifeng Lin, Ivonne M.C.M. R...
PDD Holdings Strengthens Dual Leadership and Expands Executive Team
Dec 19, 2025
On December 19, 2025, PDD Holdings announced a reshaping of its top leadership, elevating founding member and Co-Chief Executive Officer Jiazhen Zhao to Co-Chairman of the board alongside Lei Chen, formalizing a dual leadership structure in both t...
PDD Holdings Schedules Virtual Annual Meeting for December 2025
Nov 19, 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 th...
PDD Holdings Reports Q3 2025 Financial Results with Revenue Growth
Nov 18, 2025
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 ordin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.