Temu PDD’s owner crushed earnings estimates. The stock exchange is coming back into favor.

Shares of PDD Holdings rallied early Wednesday morning after owner Temu sharply beat estimates for first-quarter earnings and revenue, while Chinese and global consumers continued to flock to discount e-commerce platforms.

The budget online retail group said revenue rose 131% to $12 billion in the first quarter, while adjusted American Depository Share (ADS) earnings were $2.83. The company beat estimates on both counts, with Wall Street expecting revenue of $10.5 billion on advertising earnings of $1.45.

PDD…

PDD owns and operates Pinduoduo, a budget shopping platform in China, as well as the international marketplace Temu, which launched in the US in 2022.

The company’s shares rallied in 2023, outperforming Alibaba Group Holding and JD.com, as Pinduoduo attracted price-conscious Chinese consumers amid a domestic economic slowdown. However, in 2024 it underperformed these two competitors. Alibaba
‘S

American depositary receipts are up 11% this year, while JD.com receipts are up 15% through Tuesday. However, PDD ADS decreased by 0.6%.

PDD’s strong earnings may be starting to change that, with the company’s shares up 7% ahead of Wednesday’s trading session.

Advertisement – Scroll to continue

Write to Callum Keown at [email protected]