PDDs 087B Volume Surge Propels It to 121st in Liquidity Amid 115 Price Dip

On July 29, 2025, PDD Holdings (PDD) recorded a trading volume of $0.87 billion, a 36.11% surge from the previous day, ranking 121st in market liquidity. Despite the volume spike, the stock closed down 1.15% for the session.

Recent market activity suggests heightened institutional interest in PDD, with elevated trading volumes often signaling strategic accumulation or hedging activity. However, the price decline indicates potential profit-taking or short-term profit realization following recent gains. The divergence between volume and price action highlights cautious positioning among investors, who may be balancing bullish fundamentals with macroeconomic uncertainties.

A backtest of a volume-driven strategy revealed compelling insights: purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present. This outperformed the 29.18% benchmark return by 137.53%, with a compound annual growth rate of 31.89%. The strategy achieved zero maximum drawdown and a Sharpe ratio of 1.14, demonstrating robust risk-adjusted returns and capital efficiency.