Yes, I'd Absolutely Buy PDD Stock on This Huge Dip. Here's Why.

It's been a tough past few days for PDD Holdings (NASDAQ: PDD) shareholders. The stock tumbled to the tune of 28% on Monday -- it's biggest-ever single-day setback -- following the release of its disappointing second-quarter results and alarming guidance. Shares have continued to fall since then, too. All told, PDD stock now sits more than 40% below its August peak.Rather than fearing the prospect of further downside, risk-tolerant investors might want to use this extreme weakness as a buying opportunity. The market is overreacting to the wording of the company's admittedly dire warning. Most investors are also underappreciating how growth-measurement figures can be misleading for high-growth outfits like this one.On the off chance you're reading this and aren't familiar with the company, China's PDD Holdings is the e-commerce company formerly known as Pinduoduo. You, however, may be more familiar with its presence outside of China. This is the parent to online-shopping platform Temu (although it still operates as Pinduoduo in China), which connects manufacturers directly with consumers, thus bypassing the need for middlemen and distributors.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool