Yes, I'd Absolutely Buy PDD Stock on This Huge Dip. Here's Why.
It's been a tough past few days for PDD Holdings (NASDAQ: PDD) shareholders. The stock tumbled to the tune of 28% on Monday -- it's biggest-ever single-day setback -- following the release of its disappointing second-quarter results and alarming guidance. Shares have continued to fall since then, too. All told, PDD stock now sits more than 40% below its August peak.
Rather than fearing the prospect of further downside, risk-tolerant investors might want to use this extreme weakness as a buying opportunity. The market is overreacting to the wording of the company's admittedly dire warning. Most investors are also underappreciating how growth-measurement figures can be misleading for high-growth outfits like this one.
On the off chance you're reading this and aren't familiar with the company, China's PDD Holdings is the e-commerce company formerly known as Pinduoduo. You, however, may be more familiar with its presence outside of China. This is the parent to online-shopping platform Temu (although it still operates as Pinduoduo in China), which connects manufacturers directly with consumers, thus bypassing the need for middlemen and distributors.
Source Fool.com
