Why Did PDD Holdings (PDD) Plunge 14.63%?

Generated by AI AgentAinvest Pre-Market Radar
Tuesday, May 27, 2025 6:54 am ET1min read

On May 27, 2025,

experienced a significant drop of 14.63% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

PDD Holdings, the parent company of

, released its first-quarter financial results for 2025, revealing a 10% year-over-year increase in revenue to RMB 95.67 billion. However, this figure fell short of the consensus forecast of RMB 102.98 billion, indicating a slowdown in growth momentum. The company's net profit attributable to ordinary shareholders also saw a substantial decline, dropping 47% year-over-year to RMB 147.418 billion. This decline was attributed to increased investments in high-quality development strategies and support for , which have put short-term pressure on profits.

PDD Holdings' domestic platform, Pinduoduo, faced challenges due to weak performance, which contributed to the missed revenue estimates. The company's focus on enhancing merchant support and transitioning to a more cost-effective semi-managed model has impacted its revenue growth. Additionally, the uncertainty surrounding tariffs has posed challenges for PDD Holdings' overseas platform, Temu, potentially affecting its sales performance in the coming months.

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