Temu-Owner PDD’s Shares Dive After Warning of Worsening Profit
- The company posted disappointing revenue for the quarter
- PDD is grappling with intense competition in Chinese market
The PDD Holdings Inc. website.
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PDD Holdings Inc.’s shares plunged after warning that its profitability will trend downward over time because of intensifying competition in its home market of China.
PDD, which competes with Alibaba Group Holding Ltd., said its team was struggling to catch up with unspecified rivals because of a lack of expertise. Executives also reiterated the company’s guidance from August that sales and profit growth will slow going forward. Its stock slid as much as 10% in early US trading.