PDD Holdings Inc. (PDD)'s Global Expansion Supports Its Long-Term Growth Story

We recently published an article titled 12 High Growth E-commerce Stocks To Buy. 

On January 28, Citi analyst Alicia Yap lowered the firm’s price target on PDD Holdings Inc. (NASDAQ:PDD) to $142 from $170 while maintaining a Neutral rating ahead of the company’s Q4 earnings report. The firm expects moderating domestic retail sales to weigh on results, partially offset by a recovery in Temu’s U.S. traffic, and warns that rising operating expenses could pressure PDD’s profitability into 2026.

PDD’s ability to adapt to regulatory and macro headwinds speaks to the flexibility of its operating model. Both Pinduoduo and Temu have demonstrated strong execution through dynamic pricing, efficient sourcing, and rapid iteration of logistics and fulfillment strategies. Importantly, PDD Holdings Inc. (NASDAQ:PDD)’s global business continues to gain traction across multiple international markets, with positive user and merchant feedback underscoring the appeal of its value-driven marketplace model.

Temu, in particular, has emerged as a key growth engine, expanding PDD’s reach well beyond China and positioning the company as a global e-commerce disruptor. While continued investment is weighing on margins today, these expenditures are aimed at building durable scale, brand recognition, and supply chain advantages that can translate into meaningful operating leverage over time.

Founded in 2018 and headquartered in Dublin, Ireland, PDD Holdings Inc. (NASDAQ:PDD) operates a diversified global e-commerce ecosystem focused on connecting consumers and merchants through technology-enabled platforms. With proven adaptability, accelerating international expansion, and a long-term strategic focus, PDD stands out as a compelling growth opportunity for investors seeking exposure to global e-commerce innovation despite near-term margin volatility.

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.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 9 High Growth Canadian Stocks to Buy

Disclosure: None.