PDD Holdings: Cautious In The Near Term But Still Bullish In The Long Term

Feb. 16, 2024 3:38 AM ETPDD Holdings Inc. (PDD) StockPDD
CJ Value
382 Followers

Summary

  • PDD Holdings stock has rallied almost 40% since the investment thesis was written and after a blowout quarter in Q3 2023.
  • Morgan Stanley research suggests that Temu's momentum in the US has moderated since Q3 2023.
  • Pinduoduo, PDD's domestic e-commerce platform, is facing intensifying competition in China, especially from Alibaba's Taobao.

Pinduoduo Market Value Surpasses Alibaba

Future Publishing/Future Publishing via Getty Images

Since the initial publication of my investment thesis about PDD Holdings (NASDAQ:PDD), the stock has rallied almost 40%. After I wrote my investment thesis, PDD reported a blowout quarter for Q3 of 2023, which I

This article was written by

CJ Value
382 Followers
I am the co-founder and portfolio manager for a multi-family office with a focus on  U.S and Asia markets. I have a bachelor's and master's degree in accounting and finance from one of the top programs in the U.S. I am a CFA Charterholder.  Prior to starting on my own, I worked as an analyst at a U.S multi-billion dollar value fund for several years. During this period of time I covered both U.S and Asia equities with no market capitalization restrictions. The industries I am most familiar with are consumers, tech, healthcare, semiconductors, banking and industrials. I have business and investing connections across the world. My circle of connections helps me understand global businesses much better than the average. In my research I try my best to gather complete and accurate information. My source of information includes public filings, industry periodicals, industry conferences and expos, company visits, analyst calls, management meetings, and scuttlebutt research.  As a value investor, my investing style has been directly influenced by Warren Buffett, Peter Lynch and Charlie Munger.  I have a very flexible investment approach. My investment universe includes growth, GARP, deep value, turnaround, cyclical and special situations. I also search for values across the globe.  I am writing on Seeking Alpha because I want to seek intelligent discussions and verifiable disconfirming evidences to my thesis.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PDD either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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