PDD Gains As Investor Interest Builds Ahead Of Next Week’s Earnings: 'Retail Trades See ‘Whales’ Hand In The Surge'

PDD operates Pinduoduo in China and Temu in international markets.

PDD Holdings' U.S.-listed shares rose nearly 3% in premarket trading on Friday, ranking among the day's top 10 premarket gainers and trending on the Stocktwits platform.

The momentum builds on a 4.2% gain in Thursday's sessions and comes ahead of the Chinese e-commerce company's quarterly earnings report on Monday.

PDD operates Pinduoduo in China and Temu in international markets. The latter has grown considerably, including in the U.S., due to its focus on fast fashion and cheaper goods exported from China.

With U.S. tariffs and the discontinuation of the de minimis policy, which allowed the import of cheap products from China without customs checks and duties, Temu's business has suffered in the U.S. The company has since turned its focus to the European and local markets.

On Stocktwits, the retail sentiment for PDD stock shifted to 'extremely bullish' (85/100) as of early Friday, from 'bullish' the previous day, as users noted a significant overnight surge, potentially driven by whales or large investors pumping the stock.

PDD's stock has recovered much of its losses in May, when it plummeted after the company reported a surprise decline in net profit and a revenue miss for the first quarter.

Analysts expect PDD to report a 6.3% rise in second-quarter revenue, while adjusted earnings are seen declining over 36%, according to estimates from Koyfin.

Currently, 27 of the 40 analysts covering the stock have a 'buy' or higher rating, 12 rate it 'hold,' and one rates it 'sell,' according to Koyfin. Their average price target is $125.60, which implies a mere 2% upside from the last close.

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