PDD Holdings Stock Is Beaten Down Now, but It Could Rise Tenfold
China's third largest e-commerce company is a potential multibagger from here.
PDD (NASDAQ: PDD) is one of China's fastest-growing e-commerce companies. In the years since its 2015 founding, it has attracted hundreds of millions of shoppers with its discount marketplace for group purchases. It later expanded its booming e-commerce platform into higher-end markets, directly linked farmers to shoppers with its agricultural marketplace, and expanded overseas with Temu, which enabled its Chinese merchants to sell inexpensive products directly to foreign buyers.
From 2016 to 2023, PDD's revenue grew at a jaw-dropping compound annual rate of 142%. It also turned profitable in 2021, and its net income grew at a compound annual rate of 178% over the following two years. That helped drive PDD's stock to a record high of $202.82 in February 2021 at the apex of meme stock mania.
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