Shares of PDD Holdings are sinking Tuesday after the parent of the Temu shopping site posted first-quarter results that widely undershot analysts’ estimates as the Chinese company grapples with the trade war.

Barclays maintained an “Overweight” rating on PDD Holdings Inc. (NASDAQ:PDD) and kept a price target of $158. This decision came after an analysis of the company’s Q1 2025 results, which showed lower revenue than expected.

Colin Huang, founder of Chinese e-commerce behemoth PDD Holdings, saw his fortune shrink $5.7 billion overnight.

Temu’s last quarter may plausibly be its worst, in tariff terms — the Trump administration has already de-escalated somewhat on broad tariffs and cross-border postal fees — but anything short of a total rollback is likely to be disastrous for the firm.

PDD Holdings' long-term value hinges more on macro stability than near-term execution. Learn more about PDD stock and my recommendation.

The company is in the crosshairs of President Donald Trump’s tariffs on imports, particularly from China, which specializes in producing goods at low cost.