PDD Holdings (NASDAQ:PDD) Price Target Cut Amid Disappointing Q1 Earnings: What Investors Need to Know

Font: Financial Modeling Prep  • May 27, 2026

• Analyst Morgan Stanley reduced PDD Holdings (NASDAQ:PDD)'s price target to $129 from $148, still implying a 51.6% upside.
• PDD shares fell nearly 11% after reporting disappointing Q1 2026 results, missing revenue and profit expectations.
• The company's net income dropped 15% to RMB 12.50 billion, with GAAP earnings per share at $1.38, significantly below the $2.23 estimate.

PDD Holdings (NASDAQ:PDD) is a Chinese e-commerce company known for being the parent of the popular shopping app Temu. The company operates in a highly competitive e-commerce market in China, facing intense pressure from other major online retailers. Its performance is closely watched by investors as a measure of consumer spending in the region.

On May 27, 2026, an analyst from Morgan Stanley reduced their price target for PDD to $129 from $148. With the stock trading at $85.09 at the time, this new target still suggests a potential upside of 51.6%. This adjustment reflects recent developments in the company's financial performance.

The price target revision follows PDD's disappointing first-quarter 2026 results. The company's shares fell by nearly 11% after it announced revenue and profit figures that were below analyst expectations, as highlighted by Proactive Investors. The stock hit a new yearly low of $83.61 during the trading session.

The company reported total revenues of RMB 106.20 billion ($15.40 billion), an 11% increase from 2025 but short of the RMB 109.90 billion ($15.90 billion) consensus estimate. Profitability was a major concern, with net income falling 15% to RMB 12.50 billion, as noted by The Wall Street Journal.

This profit miss was significant, as GAAP earnings per share came in at $1.38, well below the estimated $2.23. GAAP, or Generally Accepted Accounting Principles, provides a standard method for reporting a company's financial performance. The online marketing services segment also grew just 2.5%, missing its 7.9% growth forecast.