Temu Owner PDD Holdings’ Shares Sink as Growth Slows

‘Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges,’ PDD’s vice president of finance said.

The Temu logo is displayed on a laptop in San Anselmo, Calif., on Feb. 26, 2024. Justin Sullivan/Getty Images

Temu’s parent company, PDD Holdings Inc., reported lower-than-expected sales in the second quarter, and share prices fell by 15 percent on Aug. 26 before the market opened in New York City.

Although revenue has increased, totaling more than $13 billion, the growth rate has stalled, and analysts had predicted higher sales for the second quarter. The company said in an Aug. 26 statement that its revenue increase came largely from increased revenue from online marketing and transaction services. PDD Holdings owns not just Temu but also Chinese online retailer Pinduoduo.