PDD Holdings (Pinduoduo) Stock: 2 Major Risks to Know Before Buying the Dip
PDD Holdings (NASDAQ: PDD) has been the best-performing Chinese tech company in the last 12 months -- until lately. Despite reporting solid quarterly earnings, stock in Pinduoduo's parent company plunged by more than 30% as investors sold it amid the company's pessimistic guidance on its prospects.
Still, contrarian investors and PDD Holdings bulls are taking this sell-off to buy the stock on the cheap. But before they rush into loading up on the stock, investors should consider these two headwinds the e-commerce company faces.
Image source: Getty Images.
Source Fool.com