PDD Stock Tumbles as Quarterly Results Fall Short of Estimates | Global News Avenue

PDD Holdings shares traded in the United States (PDDThe parent company of Temu Discount Markets reported quarterly results that fell well short of analysts’ forecasts, sending shares tumbling in premarket trading Thursday as competition continues to erode its operations.

Revenue rose 44.3% to 99.35 billion yuan ($13.7 billion) in the three months ended Sept. 30, below the Visible Alpha consensus of 101.6 billion yuan. third quarter Earnings per share (EPS) 4.23 yuan was also lower than the expected 4.46 yuan.

“Our revenue growth slowed further sequentially due to intensifying competition and continued external challenges,” Liu Jun, Pinduoduo’s vice president of finance, said in a statement.

Amazon launched a new section last week to counter Temu, Shein

Temu low-cost platform grows rapidly to meet challenges e-commerce Amazon giant (Amazon) and Chinese rival Alibaba (Baba) and JD.com (Jingdong). But its costly international expansion has weighed on it Profitabilityand rivals are fighting back: Amazon last week launched a new section on its app focused on items priced at $20 or less to compete with the Chinese platform and others like Shein.

Liu Warning on In August, the company reported lower-than-expected sales, putting future revenue growth under pressure as competition intensifies.

PDD’s U.S.-traded shares fell more than 8% in premarket trading and are down about 20% this year.