Republican Senator Asks DOJ and Homeland Security to Investigate PDD Holdings Inc.’s (PDD) TEMU

​PDD Holdings Inc. (NASDAQ:PDD) is one of the Cheap NASDAQ Stocks to Buy Now. On December 1, Reuters reported that Tom Cotton, who is a Republican Senator in the United States, sent a letter to Attorney General Pam Bondi asking for the US Department of Justice and Homeland Security to investigate PDD Holdings Inc.’s (NASDAQ:PDD) online retail platform Temu and privately held Shein for large-scale intellectual property theft and counterfeiting.

​PDD Holdings Inc. (NASDAQ:PDD) had faced similar accusations regarding Temu from the European Commission. The European Commission in July noted that Temu was breaking EU rules by not preventing counterfeit goods on its platform. As a result, management had assured the European Commission of its full cooperation to ensure compliance with EU rules.

​The holding company of Temu, PDD Holdings Inc. (NASDAQ:PDD), is facing challenges due to increased competition and evolving global regulations. The company posted its fiscal Q3 2025 results on November 18. It grew its quarterly revenue by 10.97% year-over-year to $15.23 billion, but fell short of expectations by $64.64 million. However, the EPS of $2.97 topped estimates by $0.63.

​Management noted that the revenue growth during the quarter remained under pressure, mainly due to intensified competition in the e-commerce sector. The company has launched several initiatives to improve its platform, including a RMB 10 billion fee reduction program and the RMB 100 billion support program. Management highlighted that these initiatives continue to weigh down the revenue growth and that the quarterly performance should not be considered guidance for future performance.

​After the release, Benchmark maintained a Buy rating on PDD Holdings Inc. (NASDAQ:PDD) with a $160 price target. The firm noted that the quarterly performance reflected expected fluctuations due to the company’s strategic initiatives. Benchmark believes that these initiatives will improve the platform and also help the company build a long-term ecosystem.

​PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce company that connects businesses and consumers through digital platforms.

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