China's PDD suffers US$55 billion market cap wipeout after flagging an uncertain market

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China's PDD suffers US$55 billion market cap wipeout after flagging an uncertain market
E-Commerce
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China's PDD Holdings missed market estimates for quarterly revenue on Monday (Aug 26), and downbeat comments from executives about China's domestic e-commerce competition and the firm's global outlook sent its shares down more than 28 per cent.

China 's PDD Holdings missed market estimates for quarterly revenue on Monday , and downbeat comments from executives about China 's domestic e-commerce competition and the firm's global outlook sent its shares down more than 28 per cent.

"We will enter a new phase of high-quality development that calls for increased investments and our profitability will be affected as a result," he added. "Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges," said PDD's Vice President of Finance Jun Liu.

Co-CEO Chen said consumers are increasingly choosing to spend on experiences rather than material goods and there is a"growing emphasis on rational consumption".

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