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 billion. Analysts polled by Visible Alpha projected CNY17.06 and CNY103.94 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 that a “slowdown in growth rate is expected as our business scales and challenges emerge꧙. 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开奖号码历史查询: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 ar🅘e plunging by almost 14% in intraday 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.