PDD Holdings Inc

PDD Holdings delivered a deeply disappointing second quarter, with both earnings and revenue falling far short of expectations. The Temu parent reported adjusted non-GAAP EPS of $2.87, missing the consensus estimate of $18.35 by 84.37%, while revenue of $16.67 billion trailed the $113.90 billion forecast by 85.36%, even as the top line grew 8.1% year-over-year. The most consequential factor dragging on the bottom line was a $1.10 billion net other loss, a dramatic reversal from $17.66 million of net other income in the year-ago period, which contributed to a 12% decline in GAAP net income to $4.03 billion. Heavier operating investments compounded the pressure, with total operating expenses climbing 13%, R&D surging 28% to $677.70 million, and sales and marketing spend rising 9% to $4.40 billion. Management framed the spending as deliberate, emphasizing support for merchants and long-term ecosystem health amid intensifying competition and regulatory scrutiny surrounding its cross-border commerce operations. Cash and short-term investments strengthened to $67.73 billion as of quarter-end.