Pinduoduo (PDD) has been experiencing intensified competition, prompting the company to increase its spending on sales and marketing (S&M). Over the past eight quarters, PDD's S&M expenses have shown significant year-over-year growth, with the most recent quarters recording increases of 55% in Q3, 51% in Q4, 44% in Q1, and 48% in Q2. This surge in marketing expenditures is part of PDD's strategy to maintain its customer base as local competitors adopt similar strategies. The company's operating expenses rose nearly 50% last quarter, driven by marketing and advertising efforts, while other costs, including staff-related expenses, more than tripled. Despite these efforts, PDD recently missed its earnings expectations, marking its first miss in a while, indicating that its financial performance may be impacted by these spending plans. The increased advertising spending is also seen as beneficial for Meta (formerly Facebook), which could gain from PDD's marketing investments.