Pinduoduo (PDD, Financial), the parent company of Temu, saw its stock drop 10% recently, marking it the weakest performer among Nasdaq 100 components. The company's third-quarter revenue reached 99.35 billion RMB, reflecting a 44% year-over-year increase but falling short of market expectations of 102.4 billion RMB. Additionally, net profit increased by 61% to 24.98 billion RMB, still below analysts' forecasts of 26.75 billion RMB.
The Vice President of Finance, Liu Jun, highlighted that revenue growth slowed further this quarter due to heightened competition and ongoing external challenges. Pinduoduo not only faces competition from Alibaba (BABA) but also from Chinese fast-fashion retailer Shein and Amazon (AMZN), which recently introduced a new discount brand, Haul.
