PDD's Trading Volume Plummets 64% Ranking 28th Amid Earnings Miss and Market Selloff

On May 28, 2025, PDD's trading volume reached 18.41 billion, a 64.04% decrease from the previous day, ranking 28th in the day's stock market. PDD's stock price fell by 4.95%, marking the third consecutive day of decline, with a total decrease of 18.30% over the past three days.

PDD Holdings, the parent company of Temu, experienced a significant selloff after reporting weaker-than-expected first-quarter earnings and a shaky forward outlook. The company's net profit for the first quarter fell by 47% to 14.74 billion yuan, primarily due to intense local competition and global trade uncertainty. The earnings miss was more pronounced at the bottom line, with non-GAAP net profit reaching 16.9 billion yuan, well below the expected 27.9 billion yuan.

Analysts attributed the massive bottom line miss to much weaker-than-expected operating margins, likely impacted by U.S. tariffs. Despite deep price cuts by retailers and government stimulus measures, a prolonged property crisis in China has cast a shadow over consumer spending, even on PDD's Pinduoduo, which has outperformed peers with its low-price focus. Slower domestic consumption, intensified competition, and global trade frictions are weighing on growth.

PDD's strategic promotional activities and advertising spend to support merchant sales have elevated costs, aimed at supporting the platform's long-term ecosystem health but sacrificing near-term profitability. The company's revenue for the quarter ended March 31 was 95.67 billion yuan, compared with analysts' average estimate of 102.51 billion yuan. PDD chairman and co-CEO Chen Lei highlighted that radical changes in external policy environments, such as tariffs, have created significant pressure for merchants.