China Galaxy International Downgrades PT on PDD Holdings (PDD) from $164 to $112

PDD Holdings Inc. (NASDAQ:PDD) is one of the best long term low volatility stocks to buy now. On May 30, China Galaxy International analyst Lei Yang downgraded the price target on PDD Holdings Inc. (NASDAQ:PDD) from $164 to $112, keeping a Hold rating on the shares.

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

Since the company is China-based, it is experiencing uncertainties due to Trump’s tariffs. Reuters reported that the global discount e-commerce platform Temu, which is owned and operated by PDD Holdings Inc. (NASDAQ:PDD), underwent a whopping 48% drop in its daily US users in May compared to March.

As a result, Temu’s advertising spend in the country also dropped considerably. Morgan Stanley equity analyst Simeon Gutman said the following about the situation in a May note:

“While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu’s competitive threat will continue to weaken.”

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations.

The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.

While we acknowledge the potential of PDD to grow, 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 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.