Temu Owner PDD Plunges 29% on Warning of Slowing Sales
- Chinese-owned company posted disappointing quarterly sales
- PDD is battling rivals like ByteDance at home and abroad
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PDD Holdings Inc.’s shares fell the most on record after Temu’s owner warned that revenue growth will inevitably dwindle, highlighting the challenges of sustaining its pace of expansion against aggressive rivals like ByteDance Ltd.
Co-founder Chen Lei repeatedly stressed that PDD’s current trajectory wasn’t sustainable, at a time competitors such as ByteDance’s TikTok and Alibaba Group Holding Ltd. are vying for budget-conscious shoppers. PDD’s US depositary receipts tumbled 29% in New York, the stock’s worst loss since its initial public offering in 2018.