Daiwa Downgrades PDD Holdings to Hold Due to Weak E-commerce Consumption Trend in China
PDD Holdings Inc. (NASDAQ:PDD) has been one of the fastest-growing Asian stocks in recent years, but a recent downgrade by Daiwa may indicate a shift in the company’s fortunes. On June 24, 2026, Daiwa downgraded PDD Holdings Inc. (NASDAQ:PDD) to Hold from Buy with a price target of $80, down from $145.
The downgrade comes as a result of the company’s disappointing performance in China’s 6.18 shopping festival, which saw overall gross merchandise value up only 0.9% year-over-year versus a 15% increase in 2025, according to Syntun. This data confirms a ‘weak’ e-commerce consumption trend in China, which is a major concern for PDD Holdings.
Daiwa cited a ‘tough’ macro backdrop, tightening regulations, a scaled-back national trade-in program, and a high base as limits on sector growth. This analysis is consistent with other analysts who have expressed concerns about the company’s performance in the Chinese market.
On June 15, BofA lowered its price target on PDD Holdings to $113 from $140 and kept a Neutral rating. BofA lowered its 2026-27 revenue forecasts by 6% and adjusted its net profit view by 21%-22% to reflect elevated ecosystem investments, including merchant traffic support, commission rebates, and platform-funded coupons booked as contra revenue.
Last month, Benchmark analyst Fawne Jiang lowered the firm’s price target on PDD Holdings to $127 from $160 and kept a Buy rating after the company reported ‘disappointing’ Q1 results. Jiang said monetization appears to be taking a backseat as the company prioritizes ecosystem health, and said the stock is likely to remain in the ‘penalty box’ near term until investors gain better visibility into earnings normalization.
PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that operates Pinduoduo and Temu. The company has been a leader in the e-commerce space, but recent challenges in the Chinese market may indicate a shift in its fortunes.
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