Temu parent PDD extends decline after JP Morgan downgrades stock

November 23, 2024 03:19 AM AEDT | By Investing

Google News:

Temu parent PDD extends decline after JP Morgan downgrades stock

Recent News

What are next big copper projects? UBS tells when equipment makers cou...

EUR/USD poised to rack up more gains as ECB and Fed rate paths set to...

Carney launches ‘One Canadian Economy’ Act to unify trade, approvals

Trump signs orders to enhance drone defenses, support supersonic trave...

Investing.com -- U.S.-listed shares of Temu parent PDD Holdings Inc DRC (NASDAQ:PDD) declined roughly 4% at $100, after JP Morgan downgraded the stock to "neutral" from "overweight" citing limited financial visibility and short-term uncertainties.

“As the company provides limited details on its investment plans, visibility on short-term financials is too low to justify an investment case on a 6-month horizon, in our view, despite the company likely remaining competitive with business upside in the long-run,” JP Morgan analyst Andre Chang wrote in the note, while hacking price target on stock to $105 from $170.

PDD’s profits declined in third quarter as the company invested more in its business to remain competitive.

Chang noted that the looming announcement of new tariff policies on Chinese products by the U.S. government under Donald Trump poses additional risks to the stock.

JPMorgan (NYSE:JPM) suggested “investors might find better returns” in JD (NASDAQ:JD) and Alibaba (NYSE:BABA) over the next three to six months, given that all three companies currently trade at similar valuations.

Discount e-commerce player PDD Holdings reported third quarter revenue at 99.35 bln yuan, sending its ADR shares down in Thursday trading. A higher unemployment among Chinese youth and a crisis in the property sector have dented consumer confidence, weighing on Pinduoduo’s sales.

Stock has lost more than 30% so far this year.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.