PDD Holdings Drags Down Chinese E-Commerce Stocks

Tiger Newspress08-26

PDD Holdings dragged down Chinese e-commerce stocks in morning trading. PDD Holdings plunged 25%, Alibaba and JD.com sank nearly 5%.

PDD Holdings, the Chinese owner of online retailer Temu, plunged after it reported quarterly revenue that missed analysts’ expectations.

PDD also said profitability could be hurt in the short term by investments in the business. 

Temu has grown quickly to become a challenger to Amazon and Chinese rivals Alibaba and JD.com. The question now is whether it can continue to outperform others at a larger scale.

“While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead,” said Lei Chen, co-CEO of PDD Holdings. “We will invest heavily in the platform’s trust and safety, support high-quality merchants, and relentlessly improve the merchant ecosystem. We are prepared to accept short-term sacrifices and potential decline in profitability.” 

PDD said total revenue for the quarter ended in June came in at $13.4 billion. Analysts had expected it to be just above $14 billion, according to FactSet estimates.

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Comments

  • Dr Rck
    08-27
    Dr Rck
    It will rise again in days time because its revenue is quite close to expected even though it missed the target but all the others PDD is doing extremely well and will sustain long term!
  • RAJAH88
    08-26
    RAJAH88
    This is funny$Alibaba(BABA)$  $Alibaba(09988)$ $PDD Holdings Inc(PDD)$    If PDD revenue miss expectations it means Alibaba management is doing a great job fending off competition and their strategy is effective. Alibaba should trend further up from here
    • VinCny82: 
      But it doesn’t seem like it from the share price I seriously don’t understand.🤣
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