PDD Holdings Misses Revenue and Profit Estimates as Consumer Spending Struggles

PDD Holdings, the parent company of China’s popular e-commerce platform Pinduoduo, reported disappointing third-quarter results, falling short of market expectations for both revenue and profit. Despite offering promotional deals and discounts, the company struggled to persuade cost-conscious consumers to spend as anticipated.

PDD’s U.S.-listed shares fell 8% in pre-market trading following the announcement. The company cited several factors affecting its performance, including higher youth unemployment and the ongoing property sector crisis in China, which have dampened consumer confidence and limited spending on its platforms.

The weaker-than-expected sales highlight the challenges facing Chinese e-commerce companies as they navigate a tough economic environment, marked by rising joblessness and declining consumer sentiment.