PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. PDD Holdings Inc. was incorporated in 2015 and is based in Dublin, Ireland.

PDD-12.26

PDD Holdings Inc.

Сильный индекс, незначительно вырос. Быки крепко уверены в своих позициях.

Strong index, slightly up. The bulls are very confident in their positions.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

PDD Holdings Inc. Sponsored ADR (PDD) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned +1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The Zacks Diversified Operations industry, to which PDD Holdings Inc. Sponsored ADR belongs, has lost 1.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.85 per share, indicating a change of +97.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +33.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $12.18 points to a change of +85.7% from the prior year. Over the last 30 days, this estimate has changed +42.6%.
For the next fiscal year, the consensus earnings estimate of $14.75 indicates a change of +21.1% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has changed +38.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for PDD Holdings Inc. Sponsored ADR.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of PDD Holdings Inc. Sponsored ADR, the consensus sales estimate of $13.79 billion for the current quarter points to a year-over-year change of +91.2%. The $56.94 billion and $73.53 billion estimates for the current and next fiscal years indicate changes of +64.4% and +29.2%, respectively.
Last Reported Results and Surprise History
PDD Holdings Inc. Sponsored ADR reported revenues of $12.02 billion in the last reported quarter, representing a year-over-year change of +119.4%. EPS of $2.83 for the same period compares with $1.01 a year ago.
Compared to the Zacks Consensus Estimate of $10.62 billion, the reported revenues represent a surprise of +13.2%. The EPS surprise was +76.87%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PDD Holdings Inc. Sponsored ADR is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
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Investors Heavily Search PDD Holdings Inc. Sponsored ADR (PDD): Here is What You Need to Know

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total International Stock ETF (Symbol: VXUS) where we have detected an approximate $1.4 billion dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 1,733,963,327 to 1,750,852,967). Among the largest underlying components of VXUS, in trading today PDD Holdings Inc (Symbol: PDD) is up about 4.2%, Vanguard International Equity Index Funds - Vanguard FTSE Emerging Markets Exchange Traded Fund (Symbol: VWO) is up about 1.6%, and Full Truck Alliance Co Ltd (Symbol: YMM) is up by about 2%. For a complete list of holdings, visit the VXUS Holdings page » The chart below shows the one year price performance of VXUS, versus its 200 day moving average:
Looking at the chart above, VXUS's low point in its 52 week range is $64.6035 per share, with $85.32 as the 52 week high point — that compares with a last trade of $85.19. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Notable ETF Inflow Detected - VXUS, PDD, VWO, YMM

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PDD (PDD) Q2 2026 Earnings Call Transcript

Key Points
It missed on the top line, although not by much, and notched a modest beat on profitability.
The company has been affected by global trade and economic policies.
A rather tepid quarterly earnings report published by PDD Holdings (NASDAQ: PDD) led to a modest sell-off in its U.S.-listed equity on Monday.
The company, perhaps best known for its international e-commerce site Temu, didn't have a bad second quarter, but its results weren't spectacular, either. Its American Depositary Shares (ADSs) sank by 1.5% during that trading session as a result.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Revenue up, adjusted profitability down
PDD reported quarterly revenue of 112.4 billion yuan ($16.7 billion), representing 8% year-over-year growth. That was the encouraging news; on the discouraging front, net income not under generally accepted accounting principles (non-GAAP, or adjusted) declined by 13% to 28.5 billion yuan ($4.2 billion). This translates to 19.33 yuan ($2.88) per ADS.
Both headline figures landed roughly in line with consensus analyst estimates. PDD-following analysts were modeling 113.9 billion yuan ($16.9 billion) on the top line, and adjusted net income of 18.35 yuan ($2.73) per ADS.
In its earnings release, PDD quoted CEO Lei Chen as saying that "Since the start of the year, global trade and regulatory landscapes have continued to evolve, creating significant challenges while also presenting new opportunities."
The company ramped up investments in its ecosystem during the quarter and promised to continue doing so. This was a key factor in the bottom-line slide.
Trouble with tariffs
China-based e-commerce companies like PDD are subject to the trade and regulatory factors Chen mentioned. While some have worked in its favor, it remains susceptible to these, particularly under an American presidential administration fond of using tariffs as a tool of foreign and economic policy.
Given that, I feel that the international business of PDD and its peers in the large Asian country is always at risk, and in ways that can be hard to predict. I wouldn't be a buyer of its ADSs these days.
Should you buy stock in PDD Holdings right now?
Before you buy stock in PDD Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PDD Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why PDD Holdings Stock Slumped Today

PDD Holdings Inc. Sponsored ADR (PDD) came out with quarterly earnings of $2.85 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $3.08 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $2.23 per share when it actually produced earnings of $1.38, delivering a surprise of -38.12%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
PDD Holdings Inc. Sponsored ADR, which belongs to the Zacks Internet - Commerce industry, posted revenues of $16.56 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.35%. This compares to year-ago revenues of $14.52 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PDD Holdings Inc. Sponsored ADR shares have lost about 22.1% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for PDD Holdings Inc. Sponsored ADR?
While PDD Holdings Inc. Sponsored ADR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PDD Holdings Inc. Sponsored ADR was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.67 on $17.82 billion in revenues for the coming quarter and $10.37 on $70.74 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Chewy (CHWY), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 9.
This online pet store is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Chewy's revenues are expected to be $3.32 billion, up 6.8% from the year-ago quarter.
Should You Invest in PDD Holdings Inc. Sponsored ADR (PDD)?
Before you invest in PDD Holdings Inc. Sponsored ADR (PDD), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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This article originally published on Zacks Investment Research (zacks.com).

PDD Holdings Inc. Sponsored ADR (PDD) Q2 Earnings Meet Estimates

Key Points
Li Lu was greatly influenced by Warren Buffett to become a value investor.
Lu launched Himalaya Capital in 1997.
Himalaya runs a very concentrated stock portfolio of seven stocks.
Li Lu, the founder and chairman of Himalaya Capital, has an incredible story.
The Chinese native served as a student leader during the Tiananmen Square protests in 1989 and eventually became a deputy commander-in-chief. After being added to China's most-wanted list, Lu eventually escaped to America and fell in love with investing.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Lu actually chose to become a value investor after hearing the great Warren Buffett speak at a lecture at Columbia University. He eventually established a close relationship with Buffett's right-hand man, Charlie Munger, who called Lu the "Chinese Warren Buffett."
Munger even invested tens of millions of his personal money into Himalaya Capital, the fund Lu founded in 1997. Lu runs a concentrated stock portfolio of just seven stocks valued at over $3.7 billion at the end of the second quarter.
The concentration is also evident in the way Buffett and Munger invest. At the end of the second quarter, Lu had invested 70% of Himalaya's capital in just two companies.
1. Alphabet: 48%
Lu and his team are all in on Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), with 48% of the fund's capital split among class A and C shares of the stock. Interestingly, Berkshire Hathaway has also recently made Alphabet one of its largest equity positions.
Himalaya first began buying Alphabet in the second quarter of 2020 and has significantly increased its position. The stock has performed phenomenally since then.
Alphabet has faced significant challenges during this time, including a Department of Justice (DOJ) lawsuit alleging that Google engaged in monopolistic practices in its digital search and advertising business.
While a federal judge agreed with the DOJ, the judge also stopped short of imposing the punitive measures investors feared, such as requiring the company to divest its Chrome web browser or preventing Alphabet from paying Apple to make Google the default search engine in Apple's Safari web browser.
Investors have also been worried about how Google would compete with emerging large language models (LLMs) that are challenging traditional search, a market it has long dominated.
However, Google's artificial intelligence overviews at the top of most search results and its Gemini family of LLMs are competitive. Other Alphabet businesses, such as YouTube, Waymo, cloud, and its custom chip unit, have also proven to be strong.
Currently trading at 16.4 times forward earnings, it's clear that the team at Berkshire and Lu think they are still buying a wonderful company in Alphabet at a fair price in the long term.
2. PDD Holdings: 22%
PDD Holdings (NASDAQ: PDD) is a large e-commerce company based in China. The company owns brands such as Pinduoduo, which allows people in China to buy items at lower prices by adding friends and family to a group, essentially buying in bulk.
PDD also owns Temu, an international e-commerce marketplace that operates in the U.S. and connects consumers directly with factories and manufacturers in China, giving them access to deep discounts.
Himalaya has owned the stock since the second quarter of 2025 and has significantly increased its position since then. The stock has struggled in this period, however.
PDD has struggled for a few reasons. The trade war between the U.S. and China, which essentially broke out when President Donald Trump took office, has hurt Chinese companies. However, there's also been fierce competition in China with other large e-commerce players like Alibaba and JD.com.
Economic growth in China has also been decelerating recently, which might be pressuring the business.
Trading at below 9 times forward earnings, the stock is cheap and has a huge opportunity with the Chinese economy.
But U.S. investors really need to understand China's regulatory environment and economy if they are going to invest in Chinese stocks, despite how tempting the valuations might be.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Berkshire Hathaway. The Motley Fool recommends Alibaba Group and JD.com. The Motley Fool has a disclosure policy.

Li Lu, "the Chinese Warren Buffett," Has Invested 70% of Himalaya's Capital in Just 2 Stocks

The following companies are expected to report earnings prior to market open on 08/24/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
PDD Holdings Inc. (PDD)is reporting for the quarter ending June 30, 2026. The internet company's consensus earnings per share forecast from the 1 analyst that follows the stock is $2.69. This value represents a 7.24% decrease compared to the same quarter last year. The last two quarters PDD had negative earnings surprises; the latest report they missed by -39.41%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PDD is 9.23 vs. an industry ratio of 13.40.
NAPCO Security Technologies, Inc. (NSSC)is reporting for the quarter ending June 30, 2026. The protection safety company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.41. This value represents a 24.24% increase compared to the same quarter last year. In the past year NSSC and beat the expectations the other three quarters. The "days to cover" for this stock exceeds 11 days. Zacks Investment Research reports that the 2026 Price to Earnings ratio for NSSC is 25.35 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.

Pre-Market Earnings Report for August 24, 2026 : PDD, NSSC

Key Points
Micron Technology, PDD Holdings, and Adobe all trade at seemingly low valuations.
Investors have been discounting these stocks due to uncertainty around their future growth.
Many stocks on the Nasdaq exchange are trading at extremely high valuations. That can make picking stocks to buy there a challenge, as many of them may be due for significant corrections due to their inflated price tags. Below, however, I'm going to look at three of the cheapest stocks on the Nasdaq-100 index, which, based on their expected future profits, appear to be bargain buys, and I'll look at why they appear to be so cheap and why they may be trading at discounts.
Micron Technology (NASDAQ:MU), PDD Holdings(NASDAQ:PDD) , and Adobe (NASDAQ:ADBE) all appear to be trading at dirt cheap valuations. Are they incredible buys right now, or is there more to the story with their seeming low prices?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Micron Technology
What's intriguing about Micron Technology is that it has generated massive gains over the past year -- up around 660%. Normally, when that happens, a stock's valuation becomes rich, and it looks to run out of room to rise higher. But with Micron, that doesn't appear to be the case. Based on analyst projections, it's trading at a forward price-to-earnings (P/E) multiple of just 6.5. By comparison, the average stock on the S&P 500 trades at a forward earnings multiple of 21. Micron, it seems, may still be due to rise higher.
Often, when this happens, investors discount the stock due to uncertainty or risk. Micron has been profiting from the shortage of memory and storage products, experiencing a surge in demand even as it has raised prices. This has historically been a cyclical market, however, and many investors may not be willing to pay a forward P/E of 20 for the stock given the danger that at some point in the future the shortage may come to an end and Micron's sales and profits tumble.
Micron may still rise higher due to the incredible growth it has been achieving, but it's by no means a risk-free investment. It's down 25% from its high, with a fair bit of profit-taking in recent months.
Although the stock may look cheap based on forward earnings, investors should tread carefully with Micron, as it's likely to continue to be volatile.
PDD Holdings
Unlike Micron, PDD Holdings' stock hasn't been taking off over the past year. Instead, it's down 26%. This Chinese-based company owns the popular Temu marketplace, known for its incredibly low-priced items. They can take over a week to ship, but customers have been willing to wait for the deals.
This was once a hot growth stock, but due to tariffs and trade tensions between the U.S. and China, investors are discounting this stock as well. There's also the issue of its slowing growth. In the first quarter of 2026, PDD's revenue rose by 11% year over year. That's good, but not exactly the explosive growth it was generating in the past; just two years ago, its revenue soared by a monstrous 131% during the same period.
The stock is trading at a forward P/E of just over eight. It's cheap, and it may prove to be a bargain buy in the long run, but the stock isn't likely to rise until and unless concern about trade goes away.
Adobe
Another stock that's down big over the past 12 months is Adobe, which has also lost 26% of its value during that stretch. Its forward P/E of nine might intrigue value investors as well.
The risk around Adobe is simple, and it relates to artificial intelligence (AI). Chatbots make it easy to create pictures, even incredibly detailed and complex ones. That's Adobe's bread and butter; in the past, someone might have needed to be an expert in Adobe Photoshop to create such masterpieces.
The disconnect is that while there is an AI risk, Adobe's sales aren't exactly falling off a cliff. In the second quarter, which ended in May, the tech company posted record revenue of $6.6 billion, up 13% year over year. The company has been incorporating AI into its products, which may be winning over customers.
However, the stock can't seem to shake the risk that this growth may not last. I'm a bit torn here because, even when Adobe was doing well and before AI, I used other software for photo editing and never quite understood why Adobe was so popular, given how expensive Photoshop was. Perhaps it does have a niche customer base that believes they need it, and that isn't willing to turn to AI.
The question for investors is whether its valuation is low enough to compensate for the uncertainty ahead. I think the tech stock may be a good contrarian buy at these levels, but there's undoubtedly risk here.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!*
Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Micron Technology. The Motley Fool recommends Nasdaq and recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

These Are 3 of the Cheapest Stocks on the Nasdaq-100 Right Now. Are They Deals, or Is There Underlying Risk Here?

Alibaba BABA is scheduled to report first-quarter fiscal 2027 results on Aug. 20.
For the fiscal first quarter, the Zacks Consensus Estimate for revenues is pegged at $38.63 billion, suggesting an 11.74% rise from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pinned at $1.94 per share, indicating a decline of 5.83% from the prior-year quarter’s reported figure.
Alibaba has a negative earnings surprise history. In the last reported quarter, the company delivered a negative earnings surprise of 92.62%. Its earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 37.65%.
Earnings Whispers for BABA
Our proven model does not conclusively predict an earnings beat for Alibaba this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
BABA has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alibaba Group Holding Limited Price and EPS Surprise
Factors to Note for BABA Ahead of Q1 Results
Alibaba enters its first-quarter fiscal 2027 results, covering April through June 2026, against a backdrop of accelerating cloud momentum but continued margin compression from aggressive AI and quick commerce investment. Management guided that Cloud Intelligence Group's external revenue growth, which reached 40% in the March quarter, was expected to remain a key growth engine, with AI-related product revenues targeting a 12th consecutive quarter of triple-digit expansion. Customer management revenues, which grew 8% year over year on a like-for-like basis excluding the new merchant subsidy program, were likely to have continued benefiting from improved take rates, even as reported CMR growth stayed muted due to the contra-revenue accounting change.
Within the China e-commerce business, quick commerce unit economics are expected to have continued improving sequentially, supported by order-mix optimization and logistics efficiency, with management reiterating confidence that unit economics would turn positive by the end of fiscal 2027. The Qwen consumer app's integration with Taobao and Tmall commerce services, completed in early May, extended AI-driven shopping assistance to a broader user base, while 88VIP membership continued expanding past 62 million. However, heavy subsidy spending and user-acquisition costs for quick commerce and Qwen remained headwinds to near-term adjusted EBITA and free cash flow, which had swung to an outflow in the prior quarter. Intensifying domestic rivalry in instant retail remained a further headwind to monetization.
On the AI and cloud front, Alibaba Cloud continued scaling its Model-as-a-Service platform and proprietary T-Head chip deployments, while capital expenditure was expected to run above the previously stated three-year RMB380 billion AI infrastructure budget, reflecting rising compute demand. This capex intensity, alongside elevated technology and marketing spend, remained a headwind to consolidated adjusted EBITA and non-GAAP net income, both of which had declined sharply in the preceding quarter.
Alibaba International Digital Commerce Group's losses are expected to have kept narrowing toward breakeven, aided by AliExpress' Choice business efficiency gains and the expanding "Brand+" merchant program. Corporate developments during the quarter included the May 20 filing of Alibaba's fiscal 2026 annual report on Form 20-F, and a May 29 multi-year sponsorship partnership with UEFA men's club competitions and EURO 2028, both reinforcing brand visibility. A fiscal 2026 annual dividend of $1.05 per ADS was paid in July.
Overall, the quarter's results, due Aug. 20, are likely to reflect a continuation of the group's trade-off between AI-driven top-line acceleration and near-term profitability pressure, with investors watching capex trajectory and quick commerce breakeven progress.
BABA Price Performance & Stock Valuation
BABA shares have plunged 13.1% year to date, underperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector's growth of 6.5% and 4%, respectively.
BABA faces tough competition from Amazon AMZN, PDD Holdings PDD and JD.com JD. Shares of Amazon have returned 12% while JD.com and PDD Holdings have lost 1.2% and 23.9% during the same period.
BABA’s Share Price Performance
BABA has a Value Score of C, which suggests stretched valuation. BABA stock is currently trading at a trailing 12-month Price/Earnings of 39.47X compared with the sector’s 29.23X.
BABA’s P/E TTM Ratio Depicts Stretched Valuation
Investment Thesis
Alibaba's fiscal 2027 first-quarter setup reflects a balanced risk-reward profile ahead of results due Aug. 20. Cloud Intelligence Group's accelerating external revenue growth and 11th-plus consecutive quarter of triple-digit AI product growth support a durable long-term monetization story, while customer management revenues underlying 8% like-for-like growth signal resilient core commerce demand. However, elevated capex likely exceeding the RMB380 billion AI infrastructure budget, persistent quick commerce subsidy spending, and compressed adjusted EBITA margins remain near-term profitability headwinds. Combined with a premium valuation relative to peers and stiff competition in instant retail and cloud, investors may find the risk-reward balanced rather than compelling until unit economics and capex discipline show clearer improvement.
Conclusion
Alibaba's AI and cloud momentum remains encouraging, but elevated capex, subsidy-driven margin pressure and stiff competition warrant caution ahead of the first quarter fiscal 2027 results. Given the stock's premium valuation against near-term earnings uncertainty, existing investors may consider holding positions through the print, while prospective buyers could wait for clearer signs of margin stabilization before establishing a new entry point.
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Alibaba Q1 Earnings Preview: Should You Buy, Sell or Hold the Stock?

In the latest market close, PDD Holdings Inc. Sponsored ADR (PDD) reached $113.41, with a +0.72% movement compared to the previous day. This change outpaced the S&P 500's 1.22% loss on the day. Elsewhere, the Dow lost 1.55%, while the tech-heavy Nasdaq lost 0.35%.
The company's shares have seen an increase of 6.99% over the last month, surpassing the Retail-Wholesale sector's loss of 4.52% and the S&P 500's loss of 2.31%.
The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. On that day, PDD Holdings Inc. Sponsored ADR is projected to report earnings of $2.56 per share, which would represent year-over-year growth of 6.67%. At the same time, our most recent consensus estimate is projecting a revenue of $15.68 billion, reflecting a 25.24% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for PDD Holdings Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, PDD Holdings Inc. Sponsored ADR is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 9.22 right now. This signifies a discount in comparison to the average Forward P/E of 22.21 for its industry.
We can also see that PDD currently has a PEG ratio of 0.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PDD's industry had an average PEG ratio of 1.29 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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