Pinduoduo Aktie News

You might not be very familiar with PDD (NASDAQ: PDD ), but this is the holding company that owns China-based e-commerce platform Pinduoduo. However, there's more to the story.

Chinese exports and imports both fell in March, missing expectations. China is also blocking foreign-made chips from its telecoms.

China is home to one of the biggest economies in the world, and after lifting its long, strict COVID regulations, it is on the rebound. Despite slow growth in the second half of last year, which caused many stocks to take a hit, some stocks have still persevered and produced excellent results.

PDD Holdings is a secretive company with strong growth and free cash flows, making its stock cheap at 13x forward free cash flow. The company has nearly $7.5 billion of net cash and could easily repay its convertible notes. PDD has the potential for 60% CAGR in 2024 and could see $15 billion of free cash flow, making its current valuation of 13x free cash flow undervalued.

Chinese stocks are so incredibly unloved these days after many years of being dragged down by the bears. Undoubtedly, the geopolitical risks associated with the names are still very much present.

Pinduoduo's low-profile culture has created some problems for the company. Temu is growing quickly, but there are huge risks and uncertainties ahead.

Recently, the U.S. House of Representatives passed a bill to ban TikTok. Should this ban be ratified by the U.S. Senate, several U.S. companies and the stock market could react negatively.

Many high-flying growth stocks crashed back to earth when the 2021 boom cooled off. Companies that weren't consistently crushing earnings estimates got caught in the broader market downdraft.