PDD Holdings (PDD) Facing Regulatory Challenges, Here's What You Need To Know

PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Foreign Stocks to Buy According to Analysts. On January 21, Reuters reported that PDD Holdings Inc. (NASDAQ:PDD) was fined 100,000 yuan, approximately $14,359, by the Shanghai district taxation bureau due to failure in submitting tax information as per the requirements. ​

The company has been facing challenges from regulators and increased competition, due to which management has warned of slowing growth in the coming quarters. As reported earlier, on January 19, Bloomberg said Chinese regulators had sent various investigators to PDD Holdings Inc.’s (NASDAQ:PDD) headquarters in recent weeks to investigate alleged misconduct. ​

Regardless, Wall Street remains bullish on the stock. Recently, on January 20, Alicia Yap from Citi assigned a Buy rating to the stock with a $170 price target. Earlier, on January 15, Eddy Wang from Morgan Stanley reiterated a Buy rating on PDD Holdings Inc. (NASDAQ:PDD) with a $148 price target.​

Morgan Stanley removed PDD Holdings Inc. (NASDAQ:PDD) from its list of top picks due to increased regulatory concerns. The firm cited the latest anti-monopoly investigation into TCOM, noting that the regulatory environment in China is becoming tough for the internet retail sector. ​

​PDD Holdings Inc. (NASDAQ:PDD) is a leading e-commerce group with a range of businesses. Pinduoduo and Temu are among the company’s main platforms, 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 as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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