PDD Holdings Financial Performance
PDD Holdings (PDD) reported a nearly 50% decline in net profit last quarter, significantly missing Zacks Consensus Estimates by 37%. This decline is attributed to several challenges, including a tariff of around 50% on Chinese goods, a weakening Chinese economy characterized by high unemployment and sluggish consumption, and intense competition in the e-commerce sector.
As a result of these factors, PDD’s profit margins have halved since 2024, indicating broader struggles with demand and profitability. Currently, PDD shares are in a downtrend and exhibit a bear flag chart pattern.
