PDD Profit Falls, Tariffs and Competition Weigh

PDD Holdings, owner of Temu and Pinduoduo, reported a nearly 50% year-over-year drop in first-quarter net profit to about 14.7 billion yuan ($2 billion), with revenue rising 10% to 95.67 billion yuan ($13.2 billion), but both figures missed analyst expectations. The company attributed the profit decline to intensified domestic competition and the impact of new U.S. tariffs, including the end of the de minimis exemption, which has forced Temu to raise prices and squeezed margins. Shares fell over 13% following the earnings report, reflecting investor anxiety about the firm's ability to navigate the shifting trade landscape. PDD executives noted continued investments to support merchants and drive long-term growth, acknowledging these actions are affecting short-term profits. The results highlight the mounting challenges for Chinese e-commerce companies amid weak domestic consumption and global trade uncertainties. PDD remains committed to pursuing long-term expansion despite short-term setbacks.