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On August 27, the U.S. stock market experienced a fluctuation, and Pinduoduo's stock price suffered a heavy blow. According to the latest data, as of the close of August 26, Pinduoduo's stock price plummeted 28.51% to $100 per share, and its total market value evaporated by more than $55 billion, setting the largest single-day drop since its listing.

The direct trigger for the stock price plunge was Pinduoduo's second quarter 2024 financial report. The financial report showed that the company's total revenue for the quarter was 97.1 billion yuan, a year-on-year increase of 86%. Although this figure still showed strong growth momentum, it was slightly lower than the market expectation of 99.99 billion yuan. Net profit attributable to Pinduoduo's ordinary shareholders was 32 billion yuan, a year-on-year increase of 144%; if not calculated in accordance with US generally accepted accounting principles, the net profit was 34.4 billion yuan, a year-on-year increase of 125%. Despite the substantial increase in net profit, the market is still disappointed with Pinduoduo's performance.

In addition, the statements made by Pinduoduo management at the performance exchange meeting after the release of the financial report further exacerbated market concerns. Pinduoduo founder and CEO Chen Lei pointed out in a conference call that the company's profit growth in the past few quarters was the result of the short-term investment cycle and the financial reporting cycle being out of sync, and should not be regarded as a long-term trend.

Chen Lei emphasized that in view of the fierce competition faced by the company in multiple business lines and the overall investment stage, Pinduoduo will not repurchase or distribute dividends in the next few years. At the same time, in order to support the long-term healthy development of the platform and the construction of high-quality supply, Pinduoduo is ready to sacrifice short-term profits in the future, and the management has reached a consensus on this.