Noor Ul Ain Rehman
2 min read
In This Article:
PDD Holdings Inc. (NASDAQ:PDD) is one of the 13 Most Undervalued Retail Stocks to Buy Right Now. On June 4, Reuters reported that the global discount e-commerce platform Temu, which is owned and operated by PDD Holdings Inc. (NASDAQ:PDD), reported a notable 48% drop in its daily US users in May compared to March.
The drop occurred after the United States closed the “de minimis” loophole on May 2, which allowed Chinese companies to deliver low-value packages to the United States without incurring tariff obligations.
A close-up of a customer using the company's e-commerce platform whilst shopping online.
The closure of de minimis led to Temu slashing its ad spending in the United States and shifting its strategy associated with order fulfillment. Engagement on the platform dropped considerably after the end of the exemption, as stated by Simeon Gutman, Morgan Stanley equity analyst, in a May note. Gutman further stated:
“While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu’s competitive threat will continue to weaken.”
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
While we acknowledge the potential of PDD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
