PDD Holdings Stock (NASDAQ: PDD) Building Momentum With Earnings on Deck

PDD Holdings' stock (NASDAQ: PDD) has been a notable gainer so far in 2025, adding 33% as the broader Nasdaq Composite has shed more than 7.5%. The parent company of Chinese e-commerce giant Pinduoduo and international platform Temu, finds itself at a critical juncture.

While the stock shows signs of strength this year, a complex mix of impressive past growth, slowing revenue projections, and fierce competition paints a mixed picture for holders. The shift in sentiment towards Chinese based companies is clear, but with earnings on deck Thursday before the open, can the stock maintain it's current trajectory?

Markets are expecting PDD to bring in an EPS of CN¥19.67, on revenue of CN¥ 115.77B. The company has shown continued growth quarter-on-quarter, but a clear trend of deceleration is emerging. Intense price competition in the Chinese e-commerce market is a major factor, with rivals like Alibaba and JD.com also reporting slower growth. The international expansion of Temu has faced some regulatory pressures, alongside tariff concerns now playing a role.

Recent Performance

• Q1 2024:
  • Total revenues: RMB 86,812.1 million (US$12,023.3 million), up 131% year-over-year.
  • Operating profit: RMB 25,973.7 million (US$3,597.3 million), up 275%.
  • Net income: RMB 27,997.8 million (US$3,877.7 million), up 246%.
• Q2 2024:
  • Total revenues: RMB 97.1 billion (US$13.4 billion), up 86% year-over-year.
  • Operating profit: RMB 32.6 billion (US$4.5 billion), up 156%.
  • Net income: RMB 32.0 billion (US$4.4 billion), up 144%.
• Q3 2024:
  • Total revenues: RMB 99,354.4 million (US$14,157.9 million), up 44% year-over-year.
  • Operating profit: RMB 24,292.5 million, up 46%.
  • Net income: RMB 24,980.7 million, up 61%.

As of this morning's pre-market, PDD shares are trading at $130.17, reflecting a 0.99% increase on Monday's close. Key performance indicators include:

• Past 5 Days: Shares have gained 9.56%.
• Past Year: The stock price has added by 0.15%.
• 5 Year Return: +283.97%
• YTD: The stock had gained a 33.04%.

Analyst Ratings and Price Targets

• Overall Consensus: Analysts have a “Moderate Buy” rating.
• Average Price Target: The 12-month average price target is $147.60, with a high of $193.61 and a low of $102.22. This suggests a potential upside of more than 40%.

In the most recent report, earnings did miss expectations on EPS and revenue for the first time in four. Management had indicated their expectations for “investing consistently and patiently in our platform ecosystem to deliver impactful results over the long run.” Chairman and Co-CEO also spoke of the hurdles to come when stating “While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead”.

Options are indicating an implied move of around 13% this week, as volatility surrounding earnings hits. Messaging around the outlook could prove to be key for the direction PDD takes in the short-term if peers' reports are any indication.