PDD Holdings Inc (PDD, Financial) has been making waves in the stock market with a significant surge in its stock price. The company's market cap stands at a whopping $125.05 billion, with its current stock price at $94.12, marking a substantial increase from its past price of $68.59 three months ago. Over the past week, the stock price has seen a gain of 22.40%, and over the past three months, it has risen by 32.81%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of PDD Holdings Inc is $122.26, compared to its past GF Value of $134.61 three months ago. This indicates that the stock is modestly undervalued, a significant improvement from being significantly undervalued three months ago.
Unpacking PDD Holdings Inc
PDD Holdings Inc, operating in the Retail - Cyclical industry, is a multinational commerce group that owns and operates a portfolio of businesses. The company aims to bring more businesses and people into the digital economy, benefiting local communities and small businesses through increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfilment capabilities, supporting its underlying businesses. 
Profitability Analysis
When it comes to profitability, PDD Holdings Inc has a Profitability Rank of 4/10, indicating a moderate level of profitability. The company's Operating Margin stands at 24.36%, better than 96.35% of 1096 companies in the same industry. Its ROE is 35.24%, ROA is 17.44%, and ROIC is 70.45%, all of which are better than the majority of companies in the industry. Over the past 10 years, the company has had 2 years of profitability, better than 9.26% of 1048 companies. 
Growth Prospects
PDD Holdings Inc has a Growth Rank of 6/10, indicating a strong growth trajectory. The company's 3-Year Revenue Growth Rate per Share is 51.80%, and its 5-Year Revenue Growth Rate per Share is 96.40%, both of which are better than the majority of companies in the industry. The company's future total revenue growth rate is estimated to be 22.05%, and its EPS without NRI growth rate is projected to be 20.97%, both of which are better than the majority of companies in the industry. 
Top Holders of PDD Holdings Inc
The top three holders of PDD Holdings Inc's stock are Baillie Gifford (Trades, Portfolio), Ray Dalio (Trades, Portfolio), and Ken Fisher (Trades, Portfolio). Baillie Gifford (Trades, Portfolio) holds 31,167,044 shares, accounting for 2.35% of the company's stock. Ray Dalio (Trades, Portfolio) holds 2,731,512 shares, accounting for 0.21% of the company's stock. Ken Fisher (Trades, Portfolio) holds 1,834,029 shares, accounting for 0.14% of the company's stock.
Competitive Landscape
PDD Holdings Inc operates in a competitive industry, with its top three competitors being Sea Ltd (SE, Financial) with a stock market cap of $21.19 billion, MercadoLibre Inc (MELI, Financial) with a stock market cap of $65.86 billion, and eBay Inc (EBAY, Financial) with a stock market cap of $23.62 billion.
Conclusion
In conclusion, PDD Holdings Inc has demonstrated strong performance in the stock market, with significant growth in its stock price over the past three months. The company's profitability and growth prospects are promising, and it has a strong presence in the Retail - Cyclical industry. Despite the competitive landscape, PDD Holdings Inc continues to hold its ground and shows potential for further growth.
