PDD Holdings (PDD) Q2 Net Profit Surges 46%, BofA Lifts Price Target

PDD Holdings Inc. (NASDAQ:PDD) ranks among the best Asian stocks to buy. Following the company’s better-than-expected second-quarter results, BofA Securities boosted its price target for PDD Holdings Inc. (NASDAQ:PDD) to $141 from $120 on August 26, retaining a Neutral rating.

While PDD Holdings’ adjusted net profit surpassed projections by 46%, its revenue was in line with consensus estimates. Despite lower ad monetization at 4.32% compared to 4.42% last year, marketing revenue increased 13% year-over-year, led by a projected 16% gain in gross merchandise value (GMV).

The company’s transaction service revenue climbed by 1% year-on-year, with strong growth from TEMU and Duoduo Grocery balancing considerable drops in China marketplace commissions as the company continued to offer charge reductions through its merchant support program.

PDD Holdings Inc. (NASDAQ:PDD) is a global commerce company that operates several businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform with a wide range of products, whereas Temu is an online marketplace that specializes in heavily discounted consumer goods.

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.