Good analysis on PDD. I think it has long term potential. But due to the extreme bullishness in US stocks, probably going to avoid this till there is a clear reversal signal to the upside.
PDD Plunges 10% on Margin Squeeze — Time to Exit?
PDD Holdings (PDD) tumbled 10.4% to $86.61 after Q1 FY2026 results showed revenue growth without profit expansion. Temu faces mounting cost pressure following the U.S. termination of the de minimis exemption, materially eroding group margins, while domestic platform monetization upside remains limited. PDD has previously reversed bearish sentiment with blowout earnings, but valuation has re-entered a downward correction. If Temu cannot quickly validate a profitable local-fulfillment model, how much longer can PDD's growth narrative hold?
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