Shares of Temu owner PDD slump as China slowdown hits sales

Published On Nov 21, 2024, 10:53 PM

PDD Holdings, the company behind e-commerce platforms Temu and Pinduoduo, has seen its US-listed shares drop nearly 11% due to disappointing sales results for the September quarter. Revenue fell to 99.35 billion yuan, missing analyst expectations of 102.8 billion yuan. This decline reflects broader challenges in China's economy, including low consumer confidence, a struggling property sector, and high youth unemployment. Additionally, increased competition and a price war in the e-commerce sector have further impacted PDD. While Temu has expanded globally, it faces regulatory pushbacks and tariff uncertainties, particularly in markets like Vietnam and Indonesia.