PDD’s slump continues, while other Chinese tech stocks also take a hit

PDD (NASDAQ:PDD) was among the most active stocks in the U.S. market on Wednesday, as the shares continued their decline following the company’s earnings result on Monday.

Shares of the company, which owns Chinese shopping app Temu, fell about 7% on Wednesday.

The stock had dipped below the $100 level mark on Tuesday after suffering a 28.5% drop on Monday. The company’s second-quarter revenue had missed estimates, and the e-commerce giant warned that revenue growth would face pressure in the quarters ahead.

PDD is facing competition to gain market share from rivals such as Alibaba (BABA) and JD.com (JD) at a time when consumers are turning cost-conscious. Last year, there was a time when PDD’s market cap had surpassed that of Alibaba.

Quarterly revenues of both Alibaba and JD.com had missed analysts’ estimates as well, and similar to PDD, both these companies’ non-GAAP earnings per American depositary share, or ADS, had surpassed expectations.

Chinese stocks on Wednesday: Alibaba -2%, JD.com – 2%, Baidu (BIDU) -3%, NetEase (NTES) -4%, Bilibili (BILI) -5%.