Temu has become one of the most downloaded shopping apps in the U.S. since launching in late 2022, thanks to ultra-low prices, viral marketing, and rapid expansion into new product categories. Its fast rise, and growing rivalry with Shein, has sparked a lot of curiosity, not just from shoppers, but from investors too.
Below, we’ll break down Temu’s outlook, how to invest indirectly today, and what to consider before putting money behind the fast-growing platform.
Is Temu publicly traded?
Temu is not a publicly traded company. Instead, it operates under PDD Holdings (PDD -1.59%), a global e-commerce company based in China.
NASDAQ: PDD
Key Data Points
When will Temu IPO?
Temu didn't have an IPO on the calendar as of 2025. As it's still in the early stages of its growth, the company likely won't seek to complete an IPO any time soon. PDD Holdings launched the company in late 2022 to help drive its growth. Before considering an IPO, it will likely want to continue supporting its new initiative and help it grow into a more mature company, including reaching solid profitability.
PDD Holdings might never complete an IPO of Temu. It could hold on to the company indefinitely as a growth driver for its investors. Another option it could consider is to spin off a portion or all of Temu to its shareholders instead of completing an IPO.
IPO
Alternatives to Temu stock
You can't buy Temu stock yet because it hasn't completed its IPO. However, you can gain exposure to the fast-fashion and apparel trends driving its growth while you wait for an IPO. Here's a look at some alternatives to consider while you wait to see whether the company will ever go public.
PDD Holdings
PDD Holdings launched Temu in September 2022, making it the most direct way to invest in Temu. PDD Holdings' investors can benefit from the growth of Temu and its other businesses, which include the popular e-commerce platform Pinduoduo.
Amazon
Temu is putting a lot of pressure on Amazon (AMZN +1.69%) by selling similar products at lower prices. However, Amazon is a behemoth in the e-commerce space. It has the financial firepower to compete even more directly with rivals like Temu and Shein by lowering prices and increasing its marketing spend.
Amazon could afford to do that because it has a major higher-margin growth driver in its cloud computing business. The business, which is capitalizing on the artificial intelligence (AI) boom, could help power Amazon's stock price even as it battles Temu.
Alibaba
Alibaba (BABA +1.96%) competes with Amazon and PDD Holdings in the global e-commerce market, selling various goods at similar prices. PDD's Temu (and its Pinduoduo platform) are also putting pressure on Alibaba. However, it has already battled competitors across its much longer operating history.
It also has several other business units to drive growth, including fintech Ant Group and a cloud computing unit. It offers diverse sources of revenue and growth that put it in a strong position to compete against upstarts like Temu and Shein.
How to buy stocks similar to Temu
Investors who want to buy one of these Temu alternatives can purchase shares in most brokerage accounts. Here's a step-by-step guide on how to invest in stocks like Temu.
Step 1: Open a brokerage account
You'll have to open and fund a brokerage account before buying shares of any company. If you still need to open one, here are some of the best-rated brokers and trading platforms. Take your time to research the brokers to find the best one for you.
Step 2: Figure out your budget
Before making your first trade, you'll need to determine a budget for how much money you want to invest. You'll then want to decide how to allocate that money. The Motley Fool's investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to hold for at least five years.
You don't have to get there on day one. For example, if you have $1,000 available to start investing, you might want to begin by allocating that money equally across at least 10 stocks and then grow from there.
Step 3: Do your research
It's essential to thoroughly research a company before buying its shares. You should learn about how it makes money, its competitors, its balance sheet, and other factors to ensure you have a solid grasp on whether the company can grow value for its shareholders over the long term.
Step 4: Place an order
Once you've opened and funded a brokerage account, set your investing budget, and researched the stock, it's time to buy shares. The process is relatively straightforward. Go to your brokerage account's order page and fill in all the relevant information, including:
- The number of shares you want to buy or the amount you want to invest to purchase fractional shares.
- The stock ticker (PDD for PDD Holdings, AMZN for Amazon, and BABA for Alibaba).
- Whether you want to place a limit order or a market order. The Motley Fool recommends using a market order since it guarantees you buy shares immediately at the current market price.
Is Temu profitable?
While PDD Holdings is a publicly traded company, it doesn't currently break out Temu's financial results. That being said, as of 2025, PDD reported stronger-than-expected sales in Q2 with an overall increase of 7% in Temu sales and an overall stock increase of roughly 10%, but more on that soon.
The business unit isn't likely to be profitable yet. According to an article by The Information, Temu is losing a lot of money as it spends heavily to win customers in the U.S. The company planned to spend $1.4 billion on U.S. advertising in 2023 and $4.3 billion in 2024 to win market share from rivals like Amazon. It's also subsidizing the high cost of international shipping.
Matters became more complex in May 2025, when PDD Holdings reported a nearly 50% drop in profits as a response to President Trump's tariffs, making Temu's products potentially unprofitable to sell.
However, PDD Holdings is still solidly profitable. The company reported its Q2 results in mid-2025, posting $14.5 billion in revenue and $3.8 billion in net non-GAAP income.
The short answer to whether Temu is profitable is probably not yet, but its parent company is still sitting well into the black.
Should you invest in Temu?
While you can't invest directly in Temu since it hasn't completed an IPO, you can buy shares of its parent company, PDD Holdings. That company gives you exposure to the growth of Temu and its leading Chinese e-commerce platform, Pinduoduo. PDD Holdings is using the profits of Pinduoduo and its other businesses to grow Temu.
PDD Holdings could have a lot of upside potential. Temu's rapid expansion is driving significant revenue growth. While Temu's losses will hold back its profitability, PDD is still very profitable, delivering strong earnings growth across its other operations. So, it could be a compelling long-term investment.
However, PDD Holdings isn't without risk. It operates in China, which carries geopolitical risks. Meanwhile, it's spending heavily to subsidize Temu's growth to compete against large rivals like Amazon, Alibaba, and JD.com (JD -0.32%). Competitors could ramp up their spending to wrestle customers back from Temu, potentially stunting its growth and hurting PDD Holdings' profitability.
Can you invest in Temu through ETFs?
Many people prefer to passively invest in a company or trend rather than actively picking a portfolio of stocks they need to manage. Investing in exchange-traded funds (ETFs) makes that easy.
Exchange-Traded Fund (ETF)
The bottom line
While you can't buy Temu shares directly, you can invest in its parent company, PDD Holdings, which also owns leading Chinese e-commerce platform Pinduoduo. The profitability of the platform and its other businesses gives PDD the funds to invest heavily in expanding Temu as it competes against large rivals like Amazon. Although PDD has its share of risk, it could be a great investment, especially as Temu grows and eventually starts making money.
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