Core Viewpoint - PDD Holdings experienced a significant decline in share price due to disappointing earnings, with revenue growth slowing and increasing cost pressures from competition [1][4][5]. Group 1: Company Performance - PDD Holdings has generated nearly $60 billion in revenue over the past twelve months, marking substantial growth since its inception 10 years ago [3]. - In the most recent quarter, revenue increased by 9% year-over-year to $15.2 billion, a notable slowdown compared to a 44% year-over-year growth in the same quarter the previous year [4]. - Operating profit grew only 3% year-over-year, with the operating margin decreasing from 28% at the beginning of the year to 22% over the past twelve months [5]. Group 2: Competitive Landscape - The company faces rising competition, particularly in the U.S. market where its Temu platform competes with Amazon, which is enhancing its product offerings and delivery speeds [5]. - Increased spending on marketing and merchant benefits due to competitive pressures is impacting profit margins [5]. Group 3: Investment Considerations - Following the recent stock drop, PDD Holdings' price-to-earnings ratio has fallen below 12, making it appear cheap compared to the S&P 500 Index average of around 30 [9]. - Despite the attractive valuation, the company operates in a highly competitive and complex Chinese retail market, which poses risks for investors [10].