0711 GMT - Temu owner PDD is likely to experience margin pressure from its first-party investments and a lower take rate at its e-commerce platform Pinduoduo, Morningstar's Chelsey Tam says in a note. The company is committing around 100 billion yuan to its first-party brand business over the next three years, but this investment isn't likely to generate near-term returns, she notes. She cuts her earnings before interest and taxes forecasts by 32%-39% for 2026-2028. Strict e-commerce tax collection will likely further reduce the spending power of Pinduoduo's large base of smaller merchants, she adds. Morningstar cuts its fair-value estimate by 8% to $141. ADRs close 4.1% lower at $83.03. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

May 29, 2026 03:11 ET (07:11 GMT)

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