BABA - PDD Holdings: Jump On The Northbound Train Before It Leaves (Upgrade)
2024-05-09 17:29:08 ET
Summary
- PDD Holdings Inc. stock has recovered remarkably after falling into a bear market, which I cautioned about.
- PDD's market outperformance over the past year demonstrates the bullish conviction in its fundamentally strong growth story.
- Pinduoduo remains a solid market share grower in China and global markets.
- Geopolitical risks linked to Temu must be watched closely, but they are not expected to be detrimental for now.
- PDD isn't valued aggressively, suggesting that significant uncertainties are likely priced in. Read on to learn more.
My Caution On PDD Stock Materialized
PDD Holdings Inc. ( PDD ) stock has regained its mojo after a stuttering start to 2024, as PDD topped out at the $150 level in January 2024. Therefore, my caution on PDD stock in my January article was timely, as PDD fell into a bear market, down almost 30% through its March 2024 lows. I assessed that PDD seemed to be in a distribution phase, which could cause more pain, and urged investors to wait for a steeper pullback before adding further....
PDD Holdings: Jump On The Northbound Train Before It Leaves (Upgrade)