Low-cost ecommerce giant PDD Holdings beats quarterly revenue estimates

PDD Holdings, which operates low-cost e-commerce marketplaces in China and internationally, beat Wall Street estimates for fourth-quarter revenue on Wednesday, driven by robust user growth and sales on its global platform, Temu.

US-listed shares of the company, which is also home to Chinese online discount retailer Pinduoduo, rose more than 13% in premarket trading.

The e-commerce giant continues to gain market share with highly competitive pricing in China and overseas as customers spend on affordable or discounted products in uncertain economic times.


Temu, which sells $4 home decor items and $10 T-shirts in the United States and other major European, Middle Eastern and Asian markets, is also benefiting from marketing initiatives that help it attract customers from rivals such as Dollar Tree and other brick-and-mortar retailers.

PDD overtook Alibaba Group Holdings on Dec. 1 to become the most valuable Chinese e-commerce company by market capitalisation after Morgan Stanley downgraded Alibaba on concerns over a slower turnaround in its cloud business and customer management revenue.

PDD's revenue was 88.88 billion yuan ($12.35 billion) in the quarter ended Dec. 31, compared with analysts' average estimate of 79.23 billion yuan, based on LSEG data.