30% stock drop at Pinduoduo amid warning of slower growth and increased investments.
Pinduoduo's stock plummeted 30% despite an 86% revenue increase and doubled net profit in the latest quarter. Investors reacted negatively to management's warning of slower growth due to rising competition and the need for significant investments in its ecosystem. The company plans to prioritize development over returning capital to shareholders, leading to concerns about future growth prospects, despite its commitment to supporting merchants and enhancing trust and safety.
September 07, 2024
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