PDD Holdings (PDD) shares are sinking Tuesday after the parent of the Temu shopping site posted first-quarter results that widely undershot analysts’ estimates.

The Chinese company posted first-quarter adjusted earnings per ADS of 11.41 Chinese yuan on revenue of CNY95.67 bi♉llion. Analysts polled by Visible Alpha projected CNY17.06 and CN൲Y103.94 billion, respectively.

"In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment,” PDD Co-CEO Lei Chen said, adding that those “investments weighed on short-term profitability.”

Finance Director Jun Liu said the company had said earlier tha💃t a “slowdown in growth rate is expected as our business scales and challenges emerge.ꦍ This trend has been further accelerated by the changes in the external environment in the first quarter.”

A trade loophole known as the 澳洲幸运5官方开奖结果体彩网:de minimis exemption that allowed foreign firms to avoid tariffs on shipments worth below $800 expired in early May, putting pressure on Chinese bargain sites like Temu and Shein.

U.S.-listed shares of PDD Holdings are plunging by almost 14% in in🦩traday trading Tuesday but are up more than 8% this year.

CORRECTION-May 27, 2025: This article has been corrected to note that adjusted earnings per ADS undershot estimates.