PDD Holdings Plunges 3.23% on Revenue Growth Slowdown

PDD Holdings dropped 3.23% in pre-market trading on August 25, 2025, as investors reacted to the company's latest financial performance.

PDD Holdings reported a 7.1% increase in second-quarter revenue, reaching 103.98 billion yuan. However, the company attributed the slower growth to intensifying competition in the e-commerce sector. Despite the revenue increase, net profit fell by 3.9% year-over-year to 30.75 billion yuan, which was better than the consensus estimate of a 40% decline.

While the company's balance sheet remains robust, with $54 billion in cash and equivalents, the short-term margin compression has led to a 21% drop in operating profit year-over-year. This has raised concerns among investors about the company's ability to maintain its profitability in the face of increasing competition.

Additionally, reports of a 25% plunge in Temu's U.S. sales have added to the pressure on PDD Holdings' stock. The company's e-commerce platform, Temu, has been a significant contributor to its revenue, and any decline in its performance could have a ripple effect on the company's overall financial health.