PDD Stock Tumbles as Quarterly Results Fall Short of Estimates

Core Insights - PDD Holdings' shares are experiencing a significant decline in premarket trading following disappointing quarterly results that fell short of analysts' expectations [1][2] - The company's revenue growth is being impacted by intense competition and costly international expansion efforts [2][4] Financial Performance - For the quarter ending September 30, PDD reported a revenue increase of 44.3%, reaching 99.35 billion yuan ($13.7 billion), which was below the consensus estimate of 101.6 billion yuan [2] - Earnings per share (EPS) for the third quarter were reported at 4.23 yuan, also missing the expected 4.46 yuan [2] Competitive Landscape - Temu, a platform under PDD, is facing increased competition from major players like Amazon, which recently launched a new section targeting low-cost items to compete directly with Temu and other rivals [4] - The competitive environment is expected to continue exerting pressure on PDD's revenue growth, as indicated by the company's Vice President of Finance [3][5]