I see the main driver as confidence in PDD’s long-term strategy. Profitability dipped due to heavy investment, but with Temu expanding globally and strong cash backing, this looks like a calculated move investors are willing to support. Analyst support and attractive valuation also seem to be reinforcing sentiment here.
That said, I remain cautious short term. Technicals are still weak, and risks from regulation, competition, and softer demand remain. For me, this is a long-term story worth watching, not chasing. I’d prefer to wait for better confirmation before increasing exposure.
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