Why PDD Holdings (PDD) Is Skyrocketing?

We recently published a list of 10 Stocks Jump on Impressive Earnings, Bullish Outlooks. In this article, we are going to take a look at where PDD Holdings Inc. (NASDAQ:PDD) stands against other stocks that have surged on impressive earnings and bullish outlooks.

The stock market ended firmer on Tuesday, with all of Wall Street’s main indices finishing in the green territory amid news that President Donald Trump temporarily delayed the imposition of tariffs against Canada and Mexico.

The Dow Jones inched up by 0.30 percent, while the S&P 500 and Nasdaq both jumped 0.72 percent and 1.35 percent, respectively.

On Tuesday, 10 companies under mixed sectors mirrored the broader market rally, fueled by impressive earnings results and optimistic business outlooks, among others. This article details the reasons behind the top gainers’ impressive performance.

To come up with Tuesday’s top gainers, we only considered those with $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a customer using the company’s e-commerce platform whilst shopping online.

PDD Holdings Inc. (NASDAQ:PDD)

PDD Holdings Inc. (NASDAQ:PDD), the parent company of e-commerce operator Temu, grew by 8.37 percent on Tuesday to end at $114.05 each as investors resorted to bargain-hunting following the company’s slump on Monday.

According to analysts, investor sentiment on Tuesday may have been buoyed by China’s retaliation of tariffs on US goods to strengthen its position amid the ongoing trade war.

Prior to the trade tensions, Temu and Shein had already been enjoying what is called the “de minimis” exemption—a Latin term that means “too small to matter.” This lets packages worth less than $800 be brought to the US without any customs fees.

The de minimis exemption has become a big advantage for both Chinese e-commerce giants as it helped them sell products such as clothes, furniture, electronics, and home decor at very low prices as they try to expand in the US.

Overall, PDD ranks 8th on our list of stocks that have surged on impressive earnings and bullish outlooks. While we acknowledge the potential of PDD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PDD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.