PDD Holdings Stock Drops After Q3 Earnings Miss

PDD Holdings Inc., the parent company of the popular shopping app Temu, experienced a significant decline in its stock value, plummeting over 10% in pre-market trading, following disappointing third-quarter results that missed market expectations. Despite a 44% revenue increase to 99.35 billion yuan, the company failed to meet the average analyst projection of 102.8 billion yuan, and net income also came in below estimates. The decline reflects broader challenges in China's e-commerce sector, impacted by economic slowdown, increased competition, and weak consumer spending. PDD has been heavily investing in rural markets and its global expansion to combat these challenges, but the intensified price competition in China remains a significant hurdle. Executives cited a lack of expertise and capabilities compared to competitors as additional reasons for the struggles. As a result, PDD's financial forecasts remain cautious amidst ongoing economic uncertainties in China.