(Reuters) -China’s PDD Holdings missed market estimates for quarterly revenue on Monday, as reduced consumer spending dented business at its domestic e-commerce platform Pinduoduo, sending the company’s shares down more than 25% in early trade.
A fragile economy, persistent weakness in the property sector and high unemployment rates, have led Chinese consumers to cut back on purchases, damaging the country’s retail and e-commerce sectors.
While Pinduoduo’s low prices and steep discounts on anything from groceries to earphones have attracted cost-conscious shoppers, major rivals have also offered heavy promotions on their own platforms, piling competitive pressure on PDD.
“Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges… Profitability will also likely be impacted as we continue to invest resolutely,” said PDD’s vice president of finance Jun Liu.
finance.yahoo.com/news/temu-owner-pdd-holdings-misses-103644109.html
