Latest news with #PDDHoldings
Bloomberg
10 hours ago
- Business
- Bloomberg
Temu's US Sales on a Losing Streak on Tariffs, Ad Spending Cut
Temu continued to suffer double-digit sales drop in the US as the online marketplace cut spending on advertising, adding to a slump caused by tariff-induced hike in product prices since April. The discount shopping app owned by PDD Holdings Inc. first saw a drop in sales after it added import duties to goods shipped directly from China in late April, according to Bloomberg Second Measure, which analyzes credit and debit card data. Import duty on shipments from China rose to 54% in early April and subsequently surged to as much as 145%.
Yahoo
2 days ago
- Business
- Yahoo
Technical Outlook Favors Tactical Options Strategy on PDD Holdings Stock (PDD)
At first glance, circumstances don't look appealing for PDD Holdings (PDD). A global e-commerce holding company, PDD is, of course, tethered to the health of the Chinese consumer economy. Its two core platforms are Pinduoduo, a social-commerce enterprise, and Temu, a budget online marketplace that brings significantly discounted goods directly from China. However, with the advent of President Donald Trump's trade tariffs, such businesses face extra scrutiny. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter To be sure, diplomats from both the U.S. and China have finished a first round of negotiations, concluding with a new framework. While details have been modest, the deal includes assurances on the supply of rare-earth minerals and potential tariff easing. At the same time, critics have lashed out, not only due to the lack of specifics but also in the form of skepticism that any meaningful progress has been made. Fundamentally, though, investors should note that the Trump administration likely understands the consequences of acting too aggressively and thus is unlikely to be irrational. It's like the reason why the President tends to walk back hard-hitting policies and rhetoric. Just the fact that this framework has materialized is evidence that the White House isn't really prepared to go toe-to-toe with the Chinese. That's good news for PDD stock from an investment perspective. It might even be better news for bullish options traders like me. For traditional buy-and-hold investors, they often deal with long-term frameworks. When analysts assign price targets, they're usually 12-month forecasts. Such an extended period provides ample flexibility for the underlying thesis to unfold. Subsequently, the research that investors conduct focuses on the 'why' of a particular asset or enterprise. On the other hand, traders are focused on the 'how' — as in, how much, how fast, and how likely. In other words, traders live in the world of probabilities. This is because options expire, meaning that a proposed strategy cannot just address the magnitude of movement (or the y-axis); the trade must also pan out within the allocated time period (x-axis). When it comes to statistical analysis, traders must have a firm understanding of the overall architecture. For most practical applications, there are two types of probabilities: derivative and conditional. The former represents the odds of a particular outcome materializing across the entire distribution of the target dataset. In colloquial terms, the derivative probability is a baseball player's batting average last season. On the other end of the statistical spectrum, the latter concept represents the odds of an event materializing from a specific subset of the data. To extend the baseball analogy, a conditional probability would be the equivalent of a player's batting average when there are runners in scoring position (RISP). For the purposes of trading, conditional probability is essentially the 'probability of the now' — how likely is the proposed setup to work when you decide to pull the trigger? While the above concept may sound simple, calculating conditional probabilities requires critical discretization. Going back to the baseball analogy, batting average with RISP can be calculated because RISP is a discrete event — if there are no runners on second or third base, then there is no RISP. Similarly, the only practical way to discretize price action is to convert it into market breadth sequences — or sequences of accumulative and distributive sessions. By doing so, the dataset speaks one coherent language that is categorizable, quantifiable, and ultimately projectable. Ultimately, market breadth is a representation of demand, and demand is a binary construct — it's either happening or it's not. Further, the balance of demand can provide traders with a statistical framework for the likelihood of transition from one behavioral state to another based on past conditional analytics. For example, in the past two months, PDD stock printed a '7-3-U' sequence: seven up weeks, three down weeks, with a net positive trajectory across the 10-week period. Since making its public market debut, this sequence materialized 44 times. In 54.55% of cases, the following week's price action results in upside, with a median return of 8.16%. On Friday, PDD stock closed at $100.58. Should the implications of the 7-3-U pan out as projected, PDD stock could reach nearly $109 in short order, perhaps in a week or two. Based on the market intelligence above, the most aggressive speculators may consider the 102/105 bull call spread expiring July 3. This transaction involves buying the $102 call and simultaneously selling the $105 call, for a net debit paid of $127 (which is the most that can be lost in the trade). Should PDD stock rise through the short strike price (105) at expiration, the maximum reward is $173, a payout of over 136%. What makes this trade attractive is the implied shift in sentiment. As a baseline, the chance that a long position in PDD stock will be profitable over any given week is only 50%. With the statistical response of the 7-3-U sequence, the odds of upside have tilted in favor of the bulls. Granted, it's a modest advantage, but the trade does favor the long side of the transaction. Additionally, the market is arguably unfamiliar with the risk-modeling protocol mentioned above. On Wall Street, PDD stock carries a Moderate Buy consensus rating based on eleven Buy, eight Hold, and two Sell ratings over the past three months. PDD's average stock price target of $124.45 implies approximately 21% upside potential over the next twelve months. While the investment narrative for PDD Holdings is arguably compelling, it may take a while for analysts' projected price targets to materialize. On the flipside, speculators can use the leverage of options to potentially extract significant gains over a short period of time, so long as they're willing to take the risk of losing their entire principal. However, through the usage of conditional probabilities, one can improve the odds of success. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Temu Battles TikTok-Like Backlash Over Data
When China-owned bargain site Temu last week entered into a data-storage deal with Oracle ORCL -1.38%decrease; red down pointing triangle, the move echoed TikTok's travails in trying to address U.S. data-privacy concerns. Temu, owned by Chinese e-commerce giant PDD Holdings PDD -0.25%decrease; red down pointing triangle, has in the last several years gained huge popularity among U.S. consumers with its ultracheap wares shipped from China. But it has also landed in the crosshairs of lawmakers who claim it inadequately protects U.S. consumers' data.
Yahoo
2 days ago
- Business
- Yahoo
JD.com Billionaire Unveils Turnaround Plan After Five-Year Slump
(Bloomberg) -- Inc. founder Richard Liu vowed to speed an overseas foray and compete with Meituan in new arenas from food delivery to travel, describing his boldest attempt yet to revive an online retailer that's languished since a 2020 government crackdown. Security Concerns Hit Some of the World's 'Most Livable Cities' How E-Scooters Conquered (Most of) Europe As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads The past half-decade was the darkest period for his company, Liu said during a rare news conference at JD's Beijing headquarters Tuesday. The company lost its way, the 52-year-old tech mogul said, at a time when rivals like PDD Holdings Inc. surged ahead. JD's future growth should all be about leveraging a battle-tested logistics network in areas like meal delivery, where it's making headway despite initial losses, the founder said. 'For JD, it's a lost five years, to put it bluntly,' Liu said in comments published in Chinese media, which a company spokesperson later confirmed. 'No innovation, no growth, no progress. It should be considered the most unremarkable and least-valuable five years in my entrepreneurial history,' Liu told reporters on the eve of JD's signature June 18 shopping festival. In March, JD made an aggressive entry into China's $80 billion-plus food delivery market, a long-dormant arena controlled by Meituan and Alibaba Group Holding Ltd.'s Liu personally handed out takeouts to customers during a publicity stunt, gave away 10 billion yuan ($1.4 billion) in user subsidies, and promised above-industry benefits for his army of 100,000 delivery riders. His offensive has forced the two rivals to step up discounts and coupons in a similar fashion, a renewed price battle that quickly caught the attention of regulators. About 40% of JD's new food-delivery users have since converted into e-commerce customers, Liu said. Despite the frenzy, Liu says JD has always played the long game of investing in supply chain and branded products. It plans to roll out its e-commerce platform in Europe in 2026, after three years of building infrastructure there. On its home turf, the company will challenge Meituan in another key market — hotel and flight bookings — offering a three-year membership program that waives commissions for hotels. Meituan founder Wang Xing was among the guests at a recent dinner Liu hosted for tech founders, the JD chief said. 'I told him straight up, 'bro, we're making a move into food delivery.'' During Tuesday's briefing, Liu portrayed China's largest online retailer by revenue as the anti-PDD — one that focuses on high-quality products and disdains the model of cross-border shipping that underpinned the success of PDD's bargain app Temu. Liu has been vocal of late. The billionaire faded from the spotlight around 2018, when he was arrested in the US on suspicion of rape, though prosecutors ultimately declined to press charges. During Beijing's crackdown on the tech sector in 2022, he joined a long list of tech founders who stepped down as chief executive officer. CEO Sandy Xu — who previously served as the company's finance head — will eventually take full leadership of JD's domestic business, Liu said, which will free him up to steer an international expansion. --With assistance from Luz Ding. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P.
Forbes
2 days ago
- Business
- Forbes
Chinese Billionaire Richard Liu Defends Food Deliveries As Losses Mount
Richard Liu, founder of on the day the company went public on the Nasdaq exchange, May 22, 2014. Richard Liu, billionaire founder of Chinese e-commerce giant defended his decision to expand into the country's hugely competitive food-delivery market and incurring heavy losses, referring to a 'lost five years' for his company. Liu, 51-year-old chairman, made the comments on Thursday, according to a report from the state-run Securities Times that didn't specify where or to whom the billionaire delivered his remarks. A company spokesperson confirmed Liu's comments to Forbes Asia. 'Unfortunately, there is nothing new from over the recent five years,' the billionaire said. 'Frankly speaking, it is a lost five years for The period has been the least innovative, with no progress and growth, and the most unremarkable in my entire entrepreneurial journey.' Liu, who has a net worth of $6.3 billion based largely on a company stake, stepped down as chief executive in 2022, amid a government crackdown on the country's internet sector that included the 2020 suspension of fintech giant Ant Group's $35 billion initial public offering. Over the years, has ceded market share to once small rivals such as the Nasdaq-listed PDD Holdings, whose founder Colin Huang has amassed a net worth of $36.1 billion as his shopping platform offers deep discounts to China's increasingly frugal consumers. The company has seen management reshuffles including the surprising departure of its previous CEO Xu Lei, who has since been replaced by the billionaire's close lieutenant Sandy Xu. According to the Securities Times, Liu returned to heavy involvement in management in late 2023 as chairman. To find new revenue sources, Liu decided to expand into food delivery. JD Takeaway was officially launched this February, with the company vowing to invest 10 billion yuan ($1.4 billion) over a year in customer subsidies to compete with more established rivals such as the Hong Kong-listed Meituan and fellow e-commerce giant Alibaba's food-delivery arm In a publicity stunt, Liu donned a delivery rider's uniform in April and rode an electric bike in Beijing to deliver meal orders. The billionaire believed the food-delivery business could help recruit more logistics riders, beef up its supply chain capabilities and, in turn, drive usage of the company's main e-commerce app, according to the Securities Times. In the few months since its launch, has grabbed 7.5% of China's food-delivery market after its daily meal orders reached 20 million on May 13, according to a May 14 research note from Blue Lotus Capital Advisors. But that progress has failed to impress investors, who worry about a mounting price war that is eroding profit margins. Hong Kong-listed shares have fallen 2.2% this year as the benchmark Hang Seng Index rallied over 20% year to date. In May, Chinese regulators summoned representatives from major food-delivery companies including and Meituan to urge fair practices amid a subsidy war. Liu vowed to continue his food delivery foray, according to the Securities Times. will incur 12 billion yuan in food-delivery related losses in 2025, according to the research note from Blue Lotus Capital Advisors. The research firm projects that the company may grab 10% of China's food-delivery market by 2030 after incurring cumulative losses of 46 billion yuan. In the first three months of this year, the latest financial results available, revenues increased 16% year-on-year to 301.1 billion yuan. Net income attributable to shareholders was 10.9 billion yuan, up 50% year-on-year, as the company benefited from China's nationwide consumer stimulus program that subsidized the purchases of selected goods such as home appliances.
