‘Electoral Risk and Potential Tariffs’ Among Other Geopolitical Issues Affecting Temu’s Parent Company PDD, Analyst Says: ‘Many People Assign Zero or Even Negative Value’ – Alibaba Gr Hldgs (NYSE:BABA), PDD Holdings (NASDAQ:PDD)

Wrestling PDD Holdings Inc (NASDAQ:PDD), parent company Ago, is currently trading at an all-time low. This is despite the company’s dynamic growth and results in the e-commerce sector.

What happened: PDD shares are currently trading at 13 times expected earnings for next year, just half the valuation of the Nasdaq 100. This is despite an impressive 43% gain from the March low, Bloomberg reported.

The company’s success in bringing its budget e-commerce model to overseas markets led to profits more than tripling in the quarter ended in March.

“People are concerned about election risks and potential tariffs on PDD, leading many to assign zero or even negative value to it,” he said Shuyan Fengdeputy general director for investment management in sp Huatai Asset Management In Hong Kong.

But the growth has also sparked interest in key Western markets, where complaints have emerged in Europe about the company’s failure to protect consumers. In the U.S., lawmakers prosecuted Temu and a rival She in exploiting legal loopholes to the detriment of American competitors.

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Despite the growth, the company’s shares are hampered by geopolitical risks and fierce competition in China’s e-commerce sector. The recent regulation of the US government regarding ByteDance limited liability company. get rid of ICT Tok further increased pressure on Chinese internet companies, including PDD.

“The main obstacle holding back the valuation of PDD is the lack of disclosure,” he said Xin Yao Ngdirector of investments in Abrdn. “It is very difficult to value domestic PDD and Temu separately, and that is important because there is definitely a large geopolitical discount to their shares because of Temu.”

Why is it important?: : Goldman Sachs Group recently updated its PDD to buy from neutral, citing the company’s strong revenue growth and ad tech opportunities. According to the analyst, the main negative factors, such as strong internal competition and tensions with the US, are “more than priced in”. Ronald Keung.

The impact of geopolitical tensions PDD Holdings Inc. falls within the broader context of competitive pressures and strategic moves by competitors. Lately, Alibaba Group Holding Ltd. (NYSE:BABA) announced the signing of the agreement David Beckham as a global brand ambassador, aiming to enhance the global appeal of its e-commerce platform.

Reduction: PDD ADR last traded at $157.57, up 2.56% from Friday’s close and is up 8.19% year-to-date, according to Benzinga Pro data.

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Photo via Shutterstock

This story was generated by Benzinga Neuro and edited by Kaustubh Bagalkote