US stocks were little changed Monday, with the S&P 500 and Dow Jones Industrial Average near record levels, as investors look to push equities back to record-high levels now that the Federal Reserve indicated that rate cuts are forthcoming.
The S&P 500 rose just 0.1%, while the Dow traded 81 points higher, or 0.2%. The Nasdaq Composite hovered just below the flatline.
PDD Holdings, the Chinese owner of online retailer Temu, plunged over 21% Monday 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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