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Barclays Maintains Overweight Rating on PDD Holdings (PDD), Keeps $158 PT

On Tuesday, May 27, Barclays maintained an “Overweight” rating on PDD Holdings Inc. (NASDAQ:PDD) and kept a price target of $158. This decision came after an analysis of the company’s Q1 2025 results, which showed lower revenue than expected. This was primarily due to reduced transaction revenues. Barclays noted that this shortfall in transaction revenue was largely linked to PDD Holdings Inc.’s (NASDAQ:PDD) Temu platform earnings, which did not meet market expectations.

A close-up of a customer using the company’s e-commerce platform whilst shopping online.

Barclays used third-party estimates of Temu’s gross merchandise volume (GMV) to conclude that its revenues were below the consensus forecasts, accounting for the majority of the miss in PDD Holdings Inc.’s (NASDAQ:PDD) transaction revenue.

Despite the Temu revenue miss, Barclays pointed out that PDD Holdings Inc.’s (NASDAQ:PDD) sales and marketing expenses for Temu in Q1 2025 were higher than expected. This indicates that the company increased its sales and marketing efforts outside the US. PDD Holdings Inc. (NASDAQ:PDD) seems to be pulling back from the US market for its cross-border full consignment model.

PDD Holdings Inc. (NASDAQ:PDD), previously Pinduoduo Inc., is a multinational commerce group. While it owns a portfolio of businesses, it is best known for its e-commerce platforms, Pinduoduo and Temu.

While we acknowledge the potential of PDD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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