Temu Parent PDD Stock Sinks on Worse-Than-Expected Q2 Sales

American depositary receipts (ADRs) of Chinese e-commerce institution PDD Holdings (PDD) are plunging successful premarket trading Monday aft nan genitor of discount marketplace Temu reported second-quarter income of 97.06 cardinal yuan ($13.63 billion), beneath statement estimates of analysts polled by Visible Alpha.

 "While encouraged by nan coagulated advancement we made successful nan past fewer quarters, we spot galore challenges ahead," PDD president and co-CEO Lei Chen said.

PDD Sees Revenue Growth, Profitability Under Pressure

"Looking ahead, gross maturation will inevitably look unit owed to intensified title and outer challenges," PDD vice president of finance Jun Liu said. "Profitability will besides apt to beryllium impacted arsenic we proceed to put resolutely."

Rival Alibaba (BABA) besides reported quarterly net that missed analysts' estimates earlier this period arsenic nan online retailers struggle pinch a anemic Chinese system and amid reports that Amazon (AMZN) has begun pitching Chinese suppliers on a caller conception of its website that would waste low-cost apparel and location equipment to U.S. consumers straight from China.

PDD ADRs plummeted astir 17% astatine $115.88 an hr earlier nan opening doorbell Monday. They had fallen 4% connected nan twelvemonth done Friday's close.