Shares of Temu parent company PDD plunge almost 29%; 'too large a correction', says analyst

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The slump comes after the company failed to meet expectations in its second quarter results.

Rein was of the view that "panic was overblown last night," and that this would be a good opportunity for investors to buy into the stock.

PDD reported operating profit of 32.56 billion yuan, surging 156% from a year ago, while attributable income jumped 144% year on year to 32.01 billion yuan. Lei Chen, chairman and co-CEO of PDD, wrote in the earnings release that "While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead."

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