PDD Holdings (PDD) stock dropped as much as 9% on Monday, marking the steepest intraday fall since March 20, according to Bloomberg’s data.
This decline is rumored to be due to renewed worries about potential tariffs on Chinese imports, triggered by a Washington Post report.
On January 27, the newspaper revealed that former President Donald Trump had considered a 60% tariff on all Chinese imports in private discussions with advisers, should he be reelected.
This news has evidently impacted investor sentiment, leading to a significant drop in PDD's stock value.
“Given PDD has become an increasingly crowded consensus long, we think it is understandable that some investors might decide to lock-in the gain even though the reaction could turn out to be premature,” analysts at Citi write in a note to clients.