Should you buy, sell, or hold PDD stock in September 2025?
PDD Holdings (PDD) is at a crossroads this September. On one hand, the company posted stronger-than-expected Q2 earnings, and its global platform Temu continues rapid expansion, challenging giants like Amazon and Shein. On the other hand, margins are under heavy pressure from subsidies, marketing, and international growth investments, creating significant near-term uncertainty.
Valuation and stock performance
From April lows of $87, shares have surged more than 40%, trading above $120 and recently peaking near $133. At a forward P/E of 16.2, the stock is cheaper than peers (Alibaba, JD.com) and below its own historical median, leaving upside potential if growth momentum continues.
Valuation and stock performance
From April lows of $87, shares have surged more than 40%, trading above $120 and recently peaking near $133. At a forward P/E of 16.2, the stock is cheaper than peers (Alibaba, JD.com) and below its own historical median, leaving upside potential if growth momentum continues.
PDD Holdings Inc.
But risks are clear: Q2 revenue growth slowed to a four-year low, operating income dropped 21%, net profit slipped 5%, and free cash flow was cut in half. PDD is deliberately sacrificing short-term profitability for long-term market dominance.
Key risks
- Heavy spending on subsidies and promotions
- Trade tariffs and regulatory headwinds from both the U.S. and China
- Fierce competition from Alibaba, JD.com, Amazon, and Shein
- Management warning of “volatile profitability”
Analysts’ outlook
Among 18 analysts, 10 rate PDD a Buy and 8 a Hold. The average price target is $140.68, about 15% upside from current levels. The most bullish target stands at $170, implying nearly 38% potential upside.
Among 18 analysts, 10 rate PDD a Buy and 8 a Hold. The average price target is $140.68, about 15% upside from current levels. The most bullish target stands at $170, implying nearly 38% potential upside.
Bottom line for September 2025
PDD is a classic high-risk, high-reward growth play. Its balance sheet is strong with $54B in cash, giving it room to fuel global expansion. But near-term earnings volatility and competitive pressure make the stock unsuitable for short-term traders.
Recommendation:
- Hold if already invested, as upside remains with analysts’ $140–170 targets.
- Careful Buy for long-term investors willing to accept volatility and bet on Temu’s global growth.
- Not ideal for short-term trading, given likely sharp swings.