PDD Holdings, which owns discount e-commerce platforms Pinduoduo and Temu, missed expectations on Monday for fourth-quarter revenue as China’s post-reopening consumer recovery remains patchy, reports Reuters. PDD reported revenue of RMB 39.82 billion ($5.79 billion) for the quarter ended Dec. 31, up 46% year-on-year, but this fell short of estimates for RMB 41.01 billion, based on Refinitiv data.
The group had reported 65% revenue growth in its third-quarter earnings last November. PDD’s fourth quarter included only the first few weeks of China’s reopening from its strict zero-COVID rules in December.
The company’s revenue growth compares with single-digit gains reported by Chinese competitors Alibaba and JD.com for the same period, leading Bo Pei, an analyst at US Tiger Securities, to note that “investors do seem to be a bit overreacting to the miss.”