Temu and Shein’s soaring popularity has Wall Street eyeing China’s influence on tech earnings

$PDD Holdings(PDD.US)$ 's Temu and Shein’s rise in the U.S. is stirring Wall Street's attention. Both companies have gained traction through aggressive online marketing and low prices, presenting new competition for Amazon, eBay, and Etsy.

Their success is partly attributed to the de minimis exception, which allows goods from China valued under $800 to enter the U.S. duty-free. This has raised concerns about trade practices and potential regulatory changes. 

$Amazon(AMZN.US)$ : Expected to report 11% revenue growth and a 63% increase in net income. Amazon is adjusting its strategies to enhance delivery speed and compete with low-cost options.

$Meta Platforms(META.US)$ : Concerns about reduced ad spending from Temu could affect Meta’s revenue growth, which is currently experiencing a slowdown.

$eBay(EBAY.US)$ and $Etsy Inc(ETSY.US)$ : Both are addressing competition differently—eBay through differentiated selection and Etsy by emphasizing artisanal goods.

Shipping and Regulation:
Temu and Shein’s shipping times are slower compared to industry leaders like Amazon, which could impact their long-term competitiveness.
Meanwhile, potential regulatory changes could affect how these platforms operate if the de minimis rule is tightened.