PDD Holdings (PDD) Shares Plunge Over 12% as Q1 Revenue, Profit Miss Estimates

PDD Holdings (PDD-US) shares tumbled 12.13% to $84.92 on May 27, 2026, after reporting first-quarter revenue and profit that fell well short of Wall Street forecasts, revealing deepening strain from China’s consumer slump and brutal e-commerce price war. Revenue rose 11% year-over-year to 106.2 billion yuan ($14.6 billion), missing the 109.3 billion yuan expected by analysts. Net profit dropped 15% to 12.5 billion yuan. The year-to-date decline has now reached nearly 15%, lagging rivals Alibaba and JD.com. The results highlight weakening Chinese demand driven by a prolonged housing crisis and job insecurity, alongside fierce discounting battles with Alibaba and ByteDance’s Douyin. PDD’s overseas platform Temu also faces mounting regulatory risks. The U.S. has already eliminated the duty-free exemption for sub-$800 shipments, and the European Union plans to scrap its 150-euro threshold in July, pushing the company to recruit more local sellers and build regional warehouses. Co-CEO Zhao Jiazhen said heavy supply-chain investment will be a core strategy for the next decade, a commitment that is now squeezing margins even as the company seeks long-term stability.