Aug 27, 2024 - Economy
Charted: Temu's plunge
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The Chinese parent company of online retailer Temu reported disappointing sales yesterday, sending the company's stock plunging.
- PDD Holdings' U.S. shares plummeted 29% Monday and fell another 4% today.
The big picture: Despite year-over-year sales growth of 86% — the type of jump that would make most companies jealous — "we see many challenges ahead," PDD Holdings co-CEO Lei Chen said in a statement.
- That warning may have triggered the sell-off, Ben Harburg, portfolio manager at asset management firm CoreValues Alpha, told CNBC.
The bottom line: Underwhelming consumer spending in China, combined with intense competition from the likes of Alibaba, Shein and Amazon, are among Temu's challenges.
