PDD Holdings downgraded at Goldman on cross-border and competition concerns

As previously reported, Goldman Sachs downgraded PDD Holdings (PDD) to Neutral from Buy with a price target of $136, down from $196, as the firm re-assesses its view of the risk-reward given two incremental developments. Namely, the firm cites a rapidly shifting policy landscape around cross-border businesses, including the recent H.R.7521 bill in the U.S. passed by the House Energy and Commerce Committee focusing on foreign apps, and domestic e-commerce peers’ re-focus on growth for 2024 as commented in recent earnings, including Alibaba’s (BABA) management having laid out priority in reigniting gross merchandise volume, or GMV, growth in its recent results.