PDD Holdings Inc. (PDD): Jim Cramer Shares “Death Rattle” For Firm

We recently published a list of Jim Cramer Discusses Melting Trade Tensions & These 12 Stocks. In this article, we are going to take a look at where PDD Holdings Inc. (NASDAQ:PDD) stands against other stocks that Jim Cramer discusses.

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese eCommerce company whose shares are flat year-to-date. Since it sources products from China and sells them in America, the firm has been caught in the center of trade tensions between the US and China. PDD Holdings Inc. (NASDAQ:PDD) had relied on the Deminimis rule to ship its products in the US. This rule exempted its parcels from tariffs, and once the exemption was lifted, the firm faced significant uncertainty. PDD Holdings Inc. (NASDAQ:PDD)’s shares sank by 19% in the days after its first quarter earnings that saw net profit drop by a whopping 47%. Cramer’s remarks about the firm focused on the firm’s warning that it was facing a growth slowdown and had to invest in order to support its customers and merchants. Here is what he said about PDD Holdings Inc. (NASDAQ:PDD):

“Did you see they said ‘radical change in external policy environment, such as tariffs, has created significant pressure for our merchants, who often like the capability to quickly, and effectively, deal with this.” I think that means, death rattle David. . .well because if they can’t adapt to the new world, this is virtually a trade embargo for their deminimis nonsense that they send over here that I’ve told you about when I ordered.”

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

Overall, PDD ranks 12th on our list of stocks that Jim Cramer discusses. 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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