Bargain-hungry Americans are flocking to Temu and making its Chinese owner very rich

PDD Holdings, the owner of Temu and Pinduoduo, is blowing past market expectations with a massive surge in profit and revenue as American and Chinese consumers swarm its bargain shopping apps for low-cost products. The Shanghai-based company reported Wednesday that net profit soared 246% to 28 billion yuan ($3.9 billion) in the first quarter of 2024, more than double the average analyst estimate of 12.62 billion yuan ($1.7 billion), according to LSEG data.

Revenue jumped 131% to 86.81 billion yuan ($12 billion) in the period, also comfortably beating expectations. Nomura analysts said that the growth momentum was coming from “both home and abroad.” The strong results boosted shares of PDD’s (PDD) Nasdaq-listed shares Wednesday, propelling its market value past $204 billion and making it China’s most valuable e-commerce company, ahead of Alibaba (BABA).

Hangzhou-based Alibaba has long dominated China’s online industry, but it has been facing stiff competition from rivals and increased regulatory scrutiny from Beijing.

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