PDD Holdings Inc. Ranks 37th in Trading Volume Amid Financial Challenges and Analyst Downgrades

Generated by AI AgentAinvest Volume Radar
Thursday, May 29, 2025 7:33 pm ET1min read

On May 29, 2025,

Inc. (NASDAQ:PDD) saw a trading volume of 15.05 billion, ranking 37th in the day's market activity. The stock price increased by 0.42%.

JPMorgan analysts have maintained a Neutral rating on

Holdings Inc. (NASDAQ:PDD) but reduced the price target to $105 from $125 on May 28.

PDD Holdings Inc. is navigating financial challenges due to strategic investments. The company's adjusted profit decreased by 45% to $1.56, falling more than a dollar below expectations. This decline is attributed to increased spending on the e-commerce platform and the impact of U.S. trade policies.

Analysts have highlighted three key issues affecting PDD: margin compression, increased merchant support costs, and the redistribution of profitability towards merchants. The 13.1-percentage-point drop in non-GAAP operating margins indicates rising costs associated with supporting merchants.

PDD Holdings Inc. is facing significant operational challenges and consumer spending concerns, which have led to a decline in stock performance. The company's first-quarter earnings were weaker than expected, exacerbated by the ongoing trade dispute between the U.S. and China.

Despite these challenges, PDD Holdings is at a critical juncture, balancing strong long-term growth prospects against near-term macroeconomic and geopolitical headwinds. The company's ability to navigate these issues will be crucial in determining its future performance.

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