Should I buy PDD Holdings stock in 2025? Expert Guide for South African Investors

What is PDD Holdings?

How much is the PDD Holdings stock?

The price of PDD Holdings stock is rising this week. Currently, the share is trading at $98.29, reflecting a 0.42% increase over the last 24 hours, but it’s down 17.95% over the past week.

The company’s market capitalization stands at $139.54 billion, with a three-month average volume of 10.89 million shares traded daily.

PDD Holdings reports a price/earnings ratio of 10.52, does not pay a dividend, and has a stock beta of 0.56, suggesting lower volatility compared to the wider market.

South African investors should note the recent sharp moves; while the stock shows signs of stabilizing, its recent declines underscore significant short-term volatility.

Our complete analysis of the PDD Holdings stock

Having rigorously reviewed PDD Holdings’ (NASDAQ: PDD) recent financial results, alongside its stock dynamics over the past three years, our team applied robust, multi-layered analysis—incorporating granular financial metrics, technical signals, sector trends, and competitive intelligence through proprietary models. This comprehensive approach reveals a nuanced and timely perspective for investors. So, why might PDD Holdings stock once again become a strategic entry point into the global e-commerce and tech platform sector in 2025?

Recent Performance and Market Context

PDD Holdings has experienced pronounced volatility in 2025, with its share price recently trading at $98.29, representing a modest one-day increase (+0.42%), but down significantly from its 52-week high of $155.67. Over the past year, the stock registered a steep correction of -35.02%, with most recent declines concentrated post-Q1 results (–17.95% in the last week). Despite these near-term setbacks, PDD maintains a robust market capitalization of $139.54 billion, reflecting its enduring relevance as a Chinese e-commerce juggernaut with global ambitions via its Temu platform.

Recent negative sentiment primarily stems from the Q1 2025 earnings miss, with EPS coming in at $1.56 vs. $2.49 expected, attributed largely to strategic investments in merchant support and temporary U.S.-China tariff headwinds. Notably, however, these investments position the business for future scale and resilience. PDD’s management proactively responded to tariff pressures by introducing coupons and reduced merchant fees, a testament to operational agility.

Meanwhile, the macro backdrop highlights resilience for leading tech platforms. Global consumer demand is normalizing post-pandemic, and e-commerce penetration in emerging markets—especially Africa—remains primed for structural expansion. Such sectoral tailwinds benefit scalable, innovative players like PDD Holdings. For South African readers, PDD’s experience navigating complex regulatory and competitive environments offers valuable insights for understanding similar dynamics in fast-growing African online commerce.

Technical Analysis

Technically, PDD Holdings is manifesting classic signs of oversold exhaustion, a potential precursor to a renewed bullish phase:

• Relative Strength Index (RSI) at 33.25: Approaching oversold territory, reflecting abnormally negative sentiment that often precedes technical rebounds.
• MACD (current: 0.59): Registered a buy signal, reinforcing the potential for positive momentum shift.
• Williams %R (-97.80) and CCI (-171.32): Both deep in buy-signal territory, indicating the stock has been aggressively sold off and may be due for upward mean reversion.
• Support and Resistance: Immediate, well-defined support at $87.11 (the 52-week low) has so far held firm, while the upper resistance remains far at $155.67, highlighting considerable potential upside should sentiment shift.
• Moving Averages: While the 20-, 50-, 100-, and 200-day moving averages remain above current price (all showing sell signals), historically such divergences—particularly when major oscillators turn positive—have signaled the late stages of downside and an optimal window for accumulation by contrarian investors.

Overall, the technical structure, though still fragile, is beginning to signal a possible recovery setup. For experienced investors, positioning near the current support zone could be a tactical move, especially ahead of anticipated positive catalysts.

Fundamental Analysis

Beneath the short-term volatility, PDD’s core fundamentals remain compelling and speak to long-term value:

• Revenue Growth: Q1 2025 revenue grew 10% YoY to RMB 95.67 billion, a resilient expansion trajectory in a turbulent macro context.
• Market Leadership & Innovation: PDD’s dual-platform approach—Pinduoduo in China and Temu across global markets—captures a diversified and rapidly growing commerce ecosystem. Market share gains across multiple categories (agriculture, apparel, electronics) underscore its competitive agility.
• Profitability & Cash Position: Despite margin compression due to strategic reinvestment, PDD delivered a sector-leading profit margin (24.63%) and a stellar return on equity (36.17%). Its formidable cash arsenal (RMB 364.5 billion) significantly exceeds industry norms, empowering ongoing innovation and risk management.
• Valuation Metrics:
• P/E Ratio at 10.52: Considerably lower than global e-commerce peers, especially given PDD’s growth profile, implying the market is pricing in excessive pessimism and offering an attractive entry multiple.
• Consensus Price Target of $133.74: Represents a 36%+ upside from current levels, hinting at a clear disconnect between operating fundamentals and market valuation.
• Structural Strengths: PDD is at the forefront of integrating AI and logistics, directly translating to better user engagement, reduced delivery times, and an enriched competitive moat.

Such fundamental attributes are rarely available at current valuation levels, reiterating the medium- to long-term case for renewed investor interest.

Volume and Liquidity

Healthy trading liquidity remains a critical asset for PDD Holdings:

• Average Daily Volume: 10.89 million shares—demonstrates robust market interest and ensures efficient price discovery, essential for both institutional and individual investors seeking to enter or exit positions dynamically.
• Beta at 0.56: Suggests relatively low volatility compared to broader tech peers, offering a preferable risk-return profile for cautious investors.
• Share Float: The large, actively traded float supports dynamic price movements and facilitates rapid rerating on the back of positive catalysts, which is important for opportunistic entry strategies.

This liquidity profile underscores confidence around price stability and execution, especially in periods of heightened market volatility.

Catalysts and Positive Outlook

Several near- and mid-term catalysts could drive the next phase of upside for PDD Holdings:

• Temu’s Global Expansion: Continuous international scaling, penetrating new demographics in North America, Europe, and the beginning stages of Africa. For South African investors, Temu’s blueprint highlights potential cross-border commerce trends relevant to the local ecosystem.
• Technological Innovation: Ongoing investment in AI-driven product recommendations and logistics enhancement is likely to reduce costs further and drive user growth. Platform stickiness and user engagement are core value drivers in any e-commerce model.
• Operational Resilience and Agility: Management’s rapid response to tariff fluctuations via coupons and merchant incentives demonstrates flexible execution—even amid adverse macro developments.
• Upcoming Earnings (August 25-29, 2025): Any evidence of margin stabilization or accelerated international growth could catalyze swift market reappraisal.
• Secular Growth in E-commerce: Increasing digital retail penetration in China, and Temu’s inroads into the West, set the stage for sustainable high growth—even under cyclically muted consumer conditions.
• ESG and Sustainability Initiatives: Emphasis on supporting rural producers and promoting sustainable consumption resonates with forward-looking investors and may attract premium valuations over time.

Collectively, these drivers provide credible grounds for anticipating a strong re-rating as short-term clouds dissipate.

Investment Strategies

Investors evaluating PDD Holdings should consider tailored strategies for different horizons, all of which appear increasingly attractive given the recent drawdown:

• Short-Term:
• Potential for a relief rally from oversold levels, especially if macro news flow or management guidance improves.
• Ideal for trading-oriented investors seeking to capitalize on volatility and mean reversion.
• Medium-Term:
• Accumulative positioning ahead of Q2 earnings and further updates on Temu’s expansion could benefit from positive surprises and sentiment shifts.
• Attractive entry at current support levels below consensus targets increases margin of safety.
• Long-Term:
• For capital allocators emphasizing secular growth, PDD’s structured investment in technology, geographic diversification, and innovation are aligned with tech megatrends.
• Low valuation multiples, massive cash reserves, and widening competitive moat support a classic “buy-on-weakness” thesis.

For all horizons, scaling in near technical lows or ahead of tangible business catalysts may maximize upside capture while containing risk.

Is it the Right Time to Buy PDD Holdings?

In light of the foregoing, the risk-reward profile of PDD Holdings has become increasingly compelling. Key strengths include resilient revenue growth, leadership in technology-enabled retail, and an undervalued platform with formidable innovation credentials. The current technical position—deeply oversold yet showing initial signs of bottoming—sets an ideal stage for fresh investor interest, especially in advance of the next earnings catalyst. While macro headwinds and recent earnings volatility should not be ignored, the company’s scale, liquidity, and adaptive strategy seem to represent an excellent opportunity for investors focused on long-term structural growth in technology-enabled commerce.

With bullish catalysts on the horizon and a valuation that appears highly attractive relative to industry peers, PDD Holdings stock may be entering a new phase of recovery and value realization—making it a stock that warrants close consideration as a building block for diversified, growth-oriented portfolios.

For investors seeking exposure to the dynamic intersection of global e-commerce, innovation, and scalable platforms, the current phase in PDD Holdings’ evolution seems to justify renewed interest—suggesting that the opportunity emerging today could define tomorrow’s winners in the ever-competitive tech landscape.

How to buy PDD Holdings stock in ZA?

Buying PDD Holdings shares online is both simple and secure for South African investors, thanks to reputable, regulated brokers. You have two main methods to choose from: spot buying (buying real shares to own and hold) or trading via CFDs (speculating on price movements with leverage, without owning the underlying shares). Each approach has its own benefits, risks, and fee structures. To help you get started confidently, a broker comparison – reviewing fees and features for South African clients – is available further down this page.

Spot Buying

Cash buying means purchasing actual PDD Holdings shares through a broker, with shares held in your name. This is the traditional way to invest, giving you full ownership and exposure to any future dividends (note: PDD Holdings currently pays no dividends). Most South African-friendly brokers offering access to US stocks charge a fixed commission per trade, often ranging from R70 to R150 (about $4–$8), plus possible minor currency conversion fees.

Example with a $1,000 stake

If the PDD Holdings share price is $98.29, you could buy around 10 shares (noting a $5 brokerage fee, and slight rounding).

• Invested: $985 ($1,000 minus $5 fee)
• Number of shares: roughly 10
• Gain scenario: If the share price rises by 10%, your shares are now worth $1,100. Result: +$100 gross gain (excluding South African and US taxes), a +10% return on your investment.

Trading via CFD

CFD trading on PDD Holdings lets you speculate on the company’s share price movements without owning the actual stock. CFDs (Contracts for Difference) are a flexible, leveraged product: you can trade ‘long’ or ‘short’ and use leverage to multiply your market exposure. Fees usually include a spread (the broker’s markup between buy/sell price) and an overnight financing charge if you keep positions open beyond one day.

Example with a $1,000 stake and 5x leverage

• You deposit $1,000 as margin and open a CFD position worth $5,000 (5x leverage).
• If the PDD Holdings share price rises by 8%, the position value increases to $5,400.
• Gain scenario: 8% × 5 = 40% return. Result: +$400 gain, on your $1,000 margin (before fees such as spread and overnight financing).

Final Advice

Before investing in PDD Holdings, it’s vital to compare brokers’ fees, trading platforms, access to US stocks, and customer support for South Africans. Your choice between spot buying and CFD trading should depend on your investment goals: if you prefer long-term ownership and lower risk, buying actual shares may suit you best. If you seek short-term opportunities with leverage, CFDs might better fit your strategy. For detailed broker comparisons and local options, see the tables further down the page.

Our 7 tips for buying PDD Holdings stock

The latest news about PDD Holdings

PDD Holdings reported a 10% year-on-year revenue increase in Q1 2025, reinforcing its growth trajectory. Despite recent setbacks, the company delivered RMB 95.67 billion in revenue, demonstrating robust top-line performance. This is particularly relevant to analysts in South Africa who closely monitor global e-commerce trends and Chinese consumption as indicators, given South Africa’s growing appetite for international retail platforms, and Temu’s rising popularity as a cost-competitive e-commerce destination among local consumers.

PDD’s Temu platform continues its international expansion, enhancing market access and offering for South African shoppers and merchants. Temu’s global rollout extends its reach to Africa, including South Africa, where its low-cost product range and frequent marketing campaigns have gained traction among local online buyers, increasing cross-border retail flows. This expansion not only supports revenue diversification but could also set the stage for regional partnerships, fostering further e-commerce participation in the South African market.

Strong liquidity and a healthy balance sheet, with RMB 364.5 billion in cash, underscore PDD’s resilience and global opportunity capture capacity. For South African institutional and retail investors seeking exposure to liquid, financially robust international stocks, PDD’s high cash reserves diminish liquidity risk and empower the company to sustain marketing and operational investments in new and emerging markets, including ventures and potential alliances in Southern Africa.

PDD’s tariff mitigation strategies, such as introducing coupons and fee reductions, help cushion potential impacts from international trade tensions. This flexibility is essential for South African consumers and businesses relying increasingly on direct-import platforms like Temu, as it helps stabilise pricing and supply even amidst evolving US-China tariff policies. It also signals disciplined management and adaptability, which are constructive traits for long-term investors evaluating global e-commerce equities.

Technical indicators signal heavily oversold conditions, suggesting potential rebound opportunities aligned with the current consensus price target that offers significant upside. Despite a sharp stock decline over the last week, technical oscillators (MACD, Williams %R, CCI) flag a ‘Buy’ scenario, while the analyst consensus price target sits well above current levels. This could imply a window for value-driven investors in South Africa tracking US-listed e-commerce players, with implied returns if the market recognizes the company’s durable fundamentals and international growth outlook.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.