Temu’s parent company, PDD Holdings Inc., has reported better-than-expected revenue for the second quarter despite spending more to combat growing competition from Alibaba and JD.com. The surge in revenue suggests that online sellers’ efforts to boost economic activity in China are starting to gain traction. However, the increased spending raises concerns about the long-term sustainability of this approach.
PDD’s revenue beat estimates, but the company has been investing heavily to stay competitive in the market. This move may have satisfied investors, but it also indicates that Temu is prepared for a costly battle against its rivals.
Source: https://www.marketwatch.com/story/temus-parent-company-is-trying-to-fend-off-competition-from-alibaba-but-its-a-costly-fight-5b2d7a7d