PDD Holdings Misses Revenue Estimates Amid Intensified Competition

Published 14 hours agoPDD

PDD Holdings Misses Revenue Estimates Amid Intensified Competition

PDD Holdings, the parent company of popular e-commerce platforms Pinduoduo and Temu, has encountered financial hurdles in the first quarter of 2025. The company reported revenue of 95.67 billion yuan ($13.30 billion), which fell short of analyst expectations pegged at 102.51 billion yuan, according to Reuters. This shortfall underscores some of the difficulties the Chinese retail giant is facing both domestically and internationally.

The company's profit took a significant hit, with net income plunging by 47% from the previous year to 14.74 billion yuan. Weak consumer sentiment in China, exacerbated by a prolonged property crisis, contributed to this decline by cutting down consumer spending. Moreover, the domestic market is seeing intensified competition as local rivals such as Alibaba and JD.com adopt aggressive pricing strategies to capture market share.

The challenges for PDD Holdings aren’t limited to China. As Temu ventures into international markets, it faces uncertainties in the global trade environment impacted by ongoing U.S.-China trade tensions. These strains have contributed to a drop in confidence, as reflected by a more than 15% fall in the company's U.S.-listed shares in premarket trading following the earnings report. While the company navigates these complex challenges, it remains positioned at the center of significant economic and competitive pressures.

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