Why Did PDD Holdings Plunge 14.11% on Earnings?

Generated by AI AgentAinvest Pre-Market Radar
Tuesday, May 27, 2025 6:42 am ET1min read

On May 27, 2025,

experienced a significant drop of 14.11% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

PDD Holdings released its first-quarter financial results, showing a 10% year-over-year increase in total revenue to 956.722 billion yuan. However, the company's net profit attributable to ordinary shareholders decreased by 47% year-over-year to 147.418 billion yuan. This decline in profitability was attributed to the company's continued investment in high-quality development and support for its commercial ecosystem, which has led to short-term financial sacrifices.

In addition to its financial performance, PDD Holdings announced the launch of its "Thousand Billion Support" strategy, aimed at enhancing support for

and the industry. The company's chairman and co-CEO, Chen Lei, emphasized the importance of long-term investment and social responsibility in navigating the current market environment.

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