Why PDD’s $60 B Revenue Surge Still Leaves Its Stock at ‘Insane’ Low Valuations

When you hear that a company has racked up $60 billion in revenue faster than Apple or Tesla, you’d expect the market to scream “buy now.” Yet that’s not what happened with PDD Holdings, the Chinese e‑commerce juggernaut behind Temu.

In a CNBC interview filmed on July 21, 2026, Sid Choraria – the founder and president of SC Marwar Capital – leaned back, shrugged, and said the stock’s valuation looks “insane” when you compare it with the cash it’s generating. He pointed to a $63 billion net‑cash balance, a figure that would make most CEOs grin.

According to Choraria, PDD’s gross merchandise volume (GMV) hit the $100 billion mark five times faster than Amazon did on its ascent. The company also boasts free cash flow that, when you run the simple math, values the shares at about three times that cash flow – a multiple that feels cheap next to the lofty multiples tech giants enjoy.

But here’s the kicker: despite all that money, the market still prices PDD at a fraction of its peers. Choraria suggested a $6 billion share‑buy‑back would be “just a rounding error” against the cash pile – a gesture that would barely dent the balance sheet, let alone shift investor sentiment.

Why the disconnect? Some analysts point to the opaque nature of Chinese e‑commerce reporting, regulatory headwinds, and concerns that the GMV growth may not translate into sustainable profit margins. Others argue that the stock simply hasn’t caught up with the narrative that PDD can out‑run the likes of Apple, Google, or even Amazon in sheer scale.

What’s clear is that the conversation isn’t about whether PDD can grow – the numbers suggest it already has. It’s about whether investors trust those numbers enough to bid up the price. Until that trust solidifies, the “insane” valuation gap might just linger, making the company a fascinating case study for anyone watching the intersection of cash‑rich tech firms and market psychology.