1 Growth Stock I'd Buy Before PDD In 2026

• PDD erstwhile grew rapidly, but its high-growth days whitethorn beryllium over.

• MercadoLibre is increasing faster, is amended diversified, and has a wider moat.

• MercadoLibre’s banal is pricier, but it deserves its premium valuation.

• 10 stocks we similar amended than PDD Holdings ›

PDD (NASDAQ: PDD), China's third-largest e-commerce institution aft Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD), went nationalist connected July 26, 2018 astatine $19 per ADS. On Feb. 17, 2021, its banal closed astatine its all-time precocious of $202.82.

That rally was fueled by the explosive maturation of its discount marketplace, its marketplace stock gains against Alibaba and JD, and the enlargement of its online cultivation business. It expanded by selling cheaper products successful China's lower-tier cities, encouraging its shoppers to squad up to people bigger bulk discounts, and bypassing supermarkets by straight connecting farmers to consumers. It besides launched a cross-border marketplace, Temu, to link its Chinese merchants to overseas buyers.

From 2018 to 2024, PDD's gross grew astatine a CAGR of 76%. It besides turned profitable successful 2021, and its nett income accrued astatine a CAGR of 144% implicit the pursuing 3 years. Those stunning maturation rates made it 1 of the fastest-growing e-commerce companies globally.

But from 2024 to 2027, analysts expect its gross and nett income to turn astatine a much humble CAGR of 12% and 7%, respectively, arsenic its concern matures. It's facing stiffer contention from Alibaba and China, portion the unpredictable tariffs are throttling Temu's overseas expansion.

PDD's banal has pulled backmost to astir $110 and appears to beryllium a bargain astatine 10 times adjacent year's earnings, but its high-growth days mightiness beryllium over. The persistent commercialized tensions betwixt the U.S. and China could besides proceed to compress its valuations. Instead of betting connected PDD's turnaround adjacent year, investors should instrumentality a person look astatine different high-growth e-commerce company, MercadoLibre (NASDAQ: MELI), which whitethorn person much upside potential.

MercadoLibre, founded successful Argentina successful 1999 and presently headquartered successful Uruguay, is the largest e-commerce institution successful Latin America. It established a first-mover's vantage by localizing its marketplace for antithetic countries, expanding its logistics web crossed challenging terrain, and securing its customers with its Mercado Pago integer payments platform.

MercadoLibre present operates its marketplace crossed 19 Latin America countries, but it generates astir of its gross successful Brazil, Argentina, and Mexico. Its Mercado Pago level has besides expanded and evolved into a full-fledged fintech ecosystem with its ain integer wallet, recognition level (Mercado Crédito), crypto trading tools, and banking services.