Reported 4 months ago
Shares of PDD Holdings Inc., the parent company of Temu, are trading at their cheapest level ever due to geopolitical risks and competition in China's e-commerce sector. Despite a 43% surge in the US-listed stock from a March low, it is still trading at just 13 times expected earnings for the next year, marking the steepest discount on record compared to the Nasdaq 100. Investors are concerned about election risks, trade war rhetoric from Beijing, and US regulatory pressures, leading to a negative valuation sentiment for Temu. While PDD has seen strong revenue growth and performance, challenges like intense competition and lack of shareholder return initiatives contribute to its undervaluation.
Source: YAHOO