Chinese e-commerce giant Temu blindsided investors Tuesday. Parent company PDD Holdings reported missed revenue and a gloomy outlook as a result of consumers cutting back. In China, money is tight due to high unemployment and a weak property market. CEO Chen Lei says consumers, who were once attracted to its bargain prices, are now being more thoughtful. He says shoppers are looking for a balance between quality and value. Stunned by the news, investors responded with the biggest one-day selloff for PDD: $55 billion in market cap was wiped out.
China’s PDD Suffers $55 Billion Market Cap Wipeout | Business Matters (Aug. 27)
By Don Ma