Why Temu Owner PDD Holding Plunged 32.1% This Week
Shares of PDD Holdings (NASDAQ: PDD), which owns the popular online marketplace Temu, fell as much as 32.9% in trading this week, according to data provided by S&P Global Market Intelligence. The company reported earnings that showed an astounding 86% increase in revenue, but the biggest news was management saying the focus would be on growth, not profits, in the future.
Second-quarter 2024 revenue jumped 86% to $13.6 billion, and operating profit jumped 156% to $4.48 billion.
While the results were impressive, co-CEO Jiazhen Zhao said in the earnings statement, "We are committed to transitioning toward high-quality development and fostering a sustainable ecosystem." He went on to say there will be short-term sacrifices and profitability may decline as a result of these investments.
Source Fool.com
