This article only represents the author's own views.
It’s been a roller coaster ride for PDD Holdings Inc. (PDD.US) this year, as the company that revolutionized Chinese e-commerce with its cut-to-the-bone prices tried to take its show on the road with its globally-focused app called Temu. Shares of the company, formerly known as Pinduoduo, briefly topped the $100 mark earlier this year, tripling over the last 12 months on a surge of optimism about its prospects, including its potential to become China’s next global internet success story. But they have fallen significantly since then, dropping nearly 30% from their high in late January, in a downward drive that accelerated after revelations first surfaced of suspected malware in its app late last month.
The highly-anticipated Temu made a big splash in its debut last September by offering a wide range of affordable products, many priced at less than $1, allowing it to deliver impressive results in just seven months. According to data from market research firm Sensor Tower, Temu was the most downloaded app in the U.S. in the first three weeks of March, followed by video editing software CapCut, short video platform TikTok and fast fashion clothing seller Shein, all of which are Chinese-owned.