In 2025, PDD increased by 32% – still buy or time for sale? News ad

Chinese actions quietly reached strong profits in 2025, removing the general fall in US shares. SPDR S&P China ETF NYSEARCA: GXC He returned by more than 15% from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning from the beginning of the year. This is impressively compared with almost -2% of the profitability of the S&P 500 index. This rally is even more pronounced when considering the return of the Chinese company Electronic commerce PDD NASDAQ: PDDField

Promotions provided total yield of more than 32% per year. Although most of the profit in the PDD arrived before the profit and wage report, the shares received a moderate 4% rise the day after the results came out. PDD released these results on March 20.

So what were the most important events from the company’s profit? How do ULALS -STRITIT analysts react, and what are the prospects for PDD shares? How could the promotion affect? The following turn to these issues and offer views on the prospects of PDD shares.

PDD: a drop in sales growth compared to expectations, the surprise of income is positive

In Q4 PDD, also known as Pinduoduo, I saw a significant divergence in performance when it came to the top and lower line. In PDD sales, an increase of more than 24%. Despite the fact that this is a hard number, it was drawn that growth analysts more than 29% expected on average. Nevertheless, the adjusted profit regarding the growth of the American depository share (ADS) was 15% impressive. This is moderately exceeded the expectations of analysts.

Nevertheless, the growth of the company’s revenue has slowed significantly, falling from 123% in the last quarter of 2023. The theme of “enhanced competition” in the domestic Chinese electronic commerce market was also a key goal in the calls of the company.

The company also seeks to support its sellers by reducing the fees that they pay PDD by 10 billion Chinese yuan. This is aimed at increasing the strength of its trade ecosystem, which can significantly benefit the PDD in the long run. However, this can also damage income and profitability in the near future.

Marketbeat tracks three analysts who have updated their target price for PDD after the release of income. These three analysts increased their target prices by 3% on average, which is consistent with the transfer in PDD shares the day after the release. The average value of their price targets indicates an increase of almost 15% in PDD shares in relation to their closing price of March 24.

PDD: Place the minimum exemption in focus

One of the key focusing areas around PDD was the tariff effect. PDD controls TEMU, an inexpensive platform of e -commerce in the United States. The Trump administration previously deleted the exclusion of tariffs for minimal to China. The release from De minimis allows goods estimated at 800 US dollars to enter the United States without tariffs. This liberation significantly benefits TEMU and helps maintain the cost of its goods so low.

The Trump administration then changed its suspension of the exclusion of de minimis. This pause occurred because American ports were overloaded with foreign goods that are faced with an increased check, if not under De minimis. Katherine Lim, the head of the Asian rally in Bloomberg Intelligence, says: “All eyes are now in early April” to see whether the rule of US de minimis is finally canceled.

Nevertheless, it seems quite possible that Trump will eliminate De minimis for Chinese goods, creating a significant short -term risk for PDD shares. The company will take time to adapt, probably creating significant volatility in its income and income.

The CATO Institute states that in 2024 1.3 billion packages entered the United States through the liberation of De Minimis in 2024. The report on the research in the Congress shows that about a third of the products of De minimis, which are part of the United States in 2023, came from China. Thus, the termination of release from De minimis can affect 400 million to 500 million Chinese packets per year.

Depending on how it imposes increased requirements for verification, this can create a huge burden on the US customs and border protection. Such a burden can potentially lead to the fact that Trump repeatedly canceled the exclusion of the exclusion of De minimis after implementation.

PDD: Good business, but perhaps the wrong time

In general, in the near future there is a significant risk to PDD shares. Competition exerts pressure on the Chinese business of the company. Meanwhile, his business in the USA, Temu, is faced with a significant risk of potential changes in De minimis.

The program to reduce trading fees can also exert more pressure on the upcoming financial indicators. It can be a good time to sit back, see what is happening around the De minimis rule, and observe the upcoming PDD financial indicators for several quarters. Nevertheless, the company still saves a strong business model and is trading 40% below its record high level.

Before considering PDD, you will want to hear this.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their customers to buy now before the wider market is won … and PDD was not on the list.

While PDD currently has a moderate purchase rating among analysts, analysts with the highest rating believe that these five promotions are better buying.

View five shares here

Discover the next wave of investment capabilities with our report, 7 shares that will be magnificent in 2025. Explore companies that are ready to reproduce growth, innovation and the creation of the cost of technical giants dominant in today’s markets.

Get this free report

Like this article? Share this with a colleague.

The link is copied to the exchange buffer.