PDD Holdings, the parent company of the e-commerce platform Temu, is currently facing profitability challenges as highlighted in its recent earnings call. The company emphasized that it prioritizes long-term intrinsic value over short-term financial performance and acknowledged that profitability pressures may persist in the near term and potentially for a longer duration. To support its merchants and maintain competitive pricing, PDD Holdings announced plans to subsidize some sellers on Temu. Despite strong global growth of the Temu platform, the company’s financial results have raised concerns among investors, leading to unusual trading activity, including increased volume in November 2025 call options. PDD Holdings is at a strategic turning point, with questions about whether its long-term investment strategy will pay off after a decade of rapid expansion.