Temu, Pinduoduo parent PDD trades near cheapest level ever as tech war, Alibaba rivalry deter investors
- While the US-listed stock has surged 43 per cent from a March low, it is still trading at half the valuation of the Nasdaq 100
- Some see the gap as justified given the geopolitical risks, as well as sales growth at competitors Alibaba, JD.com
Granted, it US-listed stock has surged 43 per cent from a March low, but it is still trading at just 13 times expected earnings for the next year. That is half the valuation of the Nasdaq 100, marking PDD’s steepest discount on record.
That might seem like a great bargain for a company that more than doubled sales in the latest quarter, a pace of growth second only to Nvidia’s on the tech-focused index.
Some see the gap as justified given the harsh trade-war rhetoric from Beijing and both candidates in the coming US presidential poll.
“People are worried about election risks and potential tariffs coming for PDD, leading many to attach zero or even negative value to Temu,” said Shuyan Feng, deputy general manager for investment management at Huatai Asset Management (Hong Kong).
