PDD: Multiple Major Risks Ahead

Mar. 05, 2023 6:37 AM ETPDD Holdings Inc. (PDD) Stock, , , , 2 Comments
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Summary

  • Pinduoduo is growing rapidly in a growing e-commerce market in China, and the growth will not stop anytime soon.
  • Chinese consumer penetration in e-commerce is only 69%, so there is room for further increases in the future.
  • High growth, significant risks, and favorable stock valuation. I think Pinduoduo is worth buying, but only for investors who can handle high price volatility and risk.

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Introduction

PDD Holdings (NASDAQ:PDD), formerly known as Pinduoduo, is growing rapidly with high revenue and profit expectations in the near future. The company provides a platform and app where Chinese consumers can buy high-quality and affordable products. Its products and

This article was written by

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I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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