PDD Holdings Shares Plunge 28% After Revenue Misses Estimates, Market Cap Drops $40 Billion
PDD Holdings, a Chinese company that runs Temu and Pinduoduo, underperformed market sales projections in the second quarter, which caused a 28% declin
PDD Holdings, a Chinese company that runs Temu and Pinduoduo, underperformed market sales projections in the second quarter, which caused a 28% decline in its U.S. shares, the worst oneday decline since its 2018 IPO. This drop, which erased over $40 billion in market capitalisation, was caused by CEOs gloomy remarks on growing local ecommerce rivalry and unpredictabilities abroad. CoCEO Chen Lei signalled a move to highquality development that will impact profitability by citing issues including shifting customer demand and rising competition. PDDs Q2 revenue of 97.06 billion yuan $13.64 billion fell short of the 100 billion yuan target due to a tripling of general and administrative expenditures and increased operating expenses.
Read More..
B2B Tech News | 2 months ago