PDD Holdings: Outlook Gets Murkier For Shareholder Returns
Summary
Increased investment volatility raises concerns about future shareholder returns, when viewed together with the manageme...
Increased investment volatility raises concerns about future shareholder returns, when viewed together with the management's reluctance to pay dividends or repurchase shares. The stock has become less undervalued in a ~40% rally since I initiated coverage in April with a buy rating. PDD remains operationally efficient but faces margin pressure and slower growth in the near term, as the company adjusts its business model.