PDD, the parent company of the popular e-commerce platform Temu, reported an 86% year-over-year increase in Q2 revenue. Despite this growth, the company’s stock price fell due to warnings from CEO Fang Wei about looming challenges, including a decline in consumer spending, heightened competition, and rising costs from inflation and supply chain issues. The revenue surge was fueled by a 143% increase in active customers and a 134% rise in gross merchandise volume. Although investor concerns have grown, PDD maintains a positive outlook on long-term growth, supported by strong brand recognition and an expanding product range.