Wall Street Has a Mixed Opinion on PDD Holdings Inc (PDD)

PDD Holdings Inc. (NASDAQ:PDD) is one of the Undervalued Cyclical Stocks to Invest In. Wall Street has a mixed opinion on PDD Holdings Inc. (NASDAQ:PDD). Recently, on January 9, Shawn Yang from Arete Research downgraded the stock from Buy to Hold with a $130 price target. However, earlier on January 6, Freedom Capital Markets reiterated a Buy rating on the stock and raised the price target from $140 to $170.

Freedom Capital noted that the company delivered mixed results during fiscal Q3 2025 released on November 18. The firm elaborated that the company showed resilience by adapting to the tariffs from the United States. Moreover, the company also removed the de minimis duty-free threshold for shipments from China. Despite these challenges, the company was still able to generate $58.8 billion in revenue, reflecting a 12.5% revenue growth year-over-year.

The firm added that despite the positive outlook, they expect the company’s margins to remain pressured as it prioritizes long-term investments. Lastly, Freedom Capital noted that the upcoming performance of PDD Holdings Inc. (NASDAQ:PDD) is closely linked to the US-China relationship. On the bright side, the company has also been gradually expanding into other international markets.

​PDD Holdings Inc. (NASDAQ:PDD) is a leading e-commerce group with a range of businesses. Pinduoduo and Temu are two of the main platforms of the company, among others. It has built a network of logistics, sourcing, and fulfillment capabilities to connect businesses with people.

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.