Colin Huang, founder of PDD Holdings, speaks at the company's listing ceremony in Shanghai in July 2018., founder of Chinese e-commerce giant PDD Holdings, boosted his wealth by $1.6 billion to $46.6 billion after the company reported a set of blowout results on Wednesday. But the tycoon, who is now China’s second-richest billionaire, may struggle to sustain his position.
The consensus-beating results stood out in China’s tech world, where fellow giants like Alibaba Group Holding and Tencent Holdings are only able to grow quarterly sales by single digits in a weak economy. PDD reported triple-digit growth thanks to a better executed discount strategy that attracted many budget shoppers in China, and the rapid expansion of its Temu shopping site abroad.
Shawn Yang, a Hong Kong-based senior research analyst at Arete Research, says some investors decided to take profit now because several factors cloud PDD’s outlook. In China, the first quarter of 2024 will probably see a slowdown as the beginning of the year is usually weak for e-commerce. The fourth quarter, by comparison, includes major shopping festivals such as Singles Day.
that TikTok’s collection of American user data poses a national security risk, an allegation that the company has repeatedly denied.during big events like the Super Bowl, using slogans such as “shop like a billionaire” to persuade U.S. consumers to buy heavily discounted goods.
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