Chinese internet giant Pinduoduo’s revenues failed to meet estimates in the December quarter, the third straight period it has fallen short of investors expectations after China’s economic slowdown stunted online consumption, reports Bloomberg. Sales for the quarter limped 3% higher to RMB 27.2 billion ($4.3 billion), Pinduoduo reported on Monday. That lags the RMB 30 billion analysts expected on average and represents by far the slowest rate of growth since the company went public in 2018.
It swung to a net income of RMB 6.6 billion from a loss previously, thanks to a sharp reduction in costs and a one-off rebate from a service provider that it didn’t specify.
The disappointing sales results reflect the challenges ahead for Pinduoduo, one of the more volatile Chinese stocks in a broad tech selloff that emerged in 2022 as investors grapple with the uncertainty of Beijing’s ongoing tech crackdown and a delisting threat from Washington. The US depositary receipts fell 4.8% in New York on Monday morning.