Investors dumped shares of Temu’s parent, PDD Holdings (PDD), after the company reported Q3/2025 results. The stock closed below $120, a price not seen since August 29.
PDD earned $2.96 in EPADS on revenue growth of 7.4% ($15.21 billion). Duo Duo’s online marketing services revenue fell during the quarter. Competition is rising, while fast fashion pressures PDD’s core business. The firm needs to provide better service to its merchants and consumers. That requires more investments, such as a CNY 100 billion support program.
PDD stock is entering a downtrend, so investors should avoid it.
Retailer Home Depot (HD) posted revenue rising by 2.8% Y/Y to $41.35 billion. It earned $3.74 (non-GAAP) in EPS. Its guidance is weak due to a lack of storm activity, housing uncertainty, and weak consumer spending. The housing market faces troubles from mortgage rates hardly falling, tariffs adding to furnishing and renovation costs, and consumers unwilling to commit to buying a home.
In the tech sector, storage supplier Western Digital (WDC) dropped by 5.9% on Tuesday. Its decline brings the share price back to late October levels. WDC stock rises and falls alongside the Magnificent 7 - 10. For example, if Amazon's (AMZN) and Microsoft’s (MSFT) cloud division weakens, demand for storage would fall. Investors would sell WDC stock as well as the big-name tech firms.
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