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PDD Holdings Inc. Stock Plummets 15% Despite Revenue Growth Amid Profit Concerns
PDD Holdings Inc. Stock Plummets 15% Despite Revenue Growth Amid Profit Concerns
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PDD Holdings Inc. (PDD) shares tumbled 15.73% to $100.48 midday on May 27, 2025, despite reporting a 10% year-over-year revenue increase to $13.18 billion for Q1 2025. The sharp decline reflects investor unease over deteriorating profitability metrics, with operating profit falling 38% and net income dropping 47% from the prior-year period.
Management attributed the profit compression to significant investments in merchant support initiatives, which overshadowed growth in online marketing services revenue (up 15%) and transaction services (up 6%). The market’s punitive response suggests skepticism about the company’s current trade-off between growth spending and bottom-line performance.
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