Loading ...PDD Holdings’ dire forecast stuns investors, triggers market plunge
PDD Holdings Inc., the owner of the Temu platform, has sent a troubling signal regarding the health of the world’s second-largest economy. The company, known for offering affordable products, presented a surprisingly pessimistic forecast while reporting revenues below analysts’ expectations.
PDD CEO Chen Lei mentioned the “inevitable” decline in revenues and profits at least eight times during the earnings conference, citing slowing economic growth as a reason. According to Bloomberg, he highlighted new challenges, including changing consumer demand, increasing competition, and uncertainty in the global environment.