PDD Holdings sees revenue miss and market cap drop, citing consumer cuts and intense competition.

From Investing.com: 2024-08-26 22:50:38

China’s PDD Holdings disappoint with revenue miss, sending shares plummeting 28%. Company cites challenges from changing consumer demand and global uncertainties. Market cap shrinks by almost $40 billion, largest drop since listing in 2018.

Fragile economy, property sector weakness, and high youth unemployment in China lead to consumer cutbacks, affecting e-commerce sector. Pinduoduo faces fierce competition from rivals Alibaba and JD.com, impacting revenue growth. Analysts express confusion over management’s bearish outlook.

PDD reports revenue of 97.06 billion yuan in Q2, missing estimates by 3 billion yuan. Operating expenses surge by 48% due to investments in marketing and promotions. General and administrative costs triple to 1.84 billion yuan. Consumer spending shift to experiences over material goods noted.



Read more at Investing.com: China’s PDD suffers $40 billion market cap wipeout after flagging an uncertain market By Reuters