PDD beats Q1 revenue estimates

PDD Holdings beat first-quarter revenue estimates on Wednesday, powered by its international shopping site Temu and growing consumer interest in its Chinese discount e-commerce platform Pinduoduo, reports Reuters. The company’s revenue rose 131% to RMB 86.81 billion ($11.99 billion) in the first quarter, compared with analysts’ average estimate of RMB 75.66 billion, based on LSEG data.

PDD’s shares were up 5.7% in pre-market trading. Consumers in China have turned to less expensive shopping platforms such as Pinduoduo and Bytedance’s Douyin at a time when a property sector downturn and rising local debt has weighed on the country’s economic growth.

Temu, Pinduoduo’s sister app, sells a wide variety of products, many of them made in China, for rock-bottom prices. Its popularity has grown since its launch in September 2022, as has competition with e-commerce incumbents such as Shein and Amazon in the United States and other markets.