Benchmark Maintains a Buy on PDD Holdings (PDD)

PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 26, Benchmark reiterated a Buy rating on PDD Holdings Inc. (NASDAQ:PDD) with a price target of $160.

​The positive rating comes despite the company’s mixed results during fiscal Q4 2025, released on March 25. During the quarter, the company grew its revenue by 17.66% year-over-year to $17.96 billion, but missed estimates by $155.77 million. The EPS of $2.56 also missed the consensus by $0.49.

​Benchmark said in a research note that they remain incrementally positive on PDD despite mixed results. The firm noted that the company faced pressures from a domestic slowdown driven by limited trade-in program benefits that hurt margins and international challenges in a volatile trade environment.

​The firm expects the company to focus on upgrading its supply chain and easing trade pressures to return to normalized growth and profitability. Benchmark projects low-teens GMV growth domestically, outpacing industry averages. On the other hand, the firm highlighted that Temu sustains solid expansion in Europe and shifts its US operations toward breakeven and efficiency.

​PDD Holdings Inc. (NASDAQ:PDD) operates a diversified global e-commerce ecosystem focused on connecting consumers and merchants through technology-enabled platforms.

While we acknowledge the risk and potential of PDD  as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PDD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. 

Disclosure: None. Follow Insider Monkey on Google News.