Pinduoduo Inc. (PDD) shares hit new 52-week high after strong Q3 performance
Revenue for the quarter came in at 14.21 billion yuan, up 89 percent from the same period last year
avatar
Staff or Guest writer for The Dog of Wall Street.
2020-11-12 12:16

Pinduoduo Inc. (PDD) shares skyrocketed more than 20 percent on Thursday morning after the  Shanghai, China-based interactive e-commerce platform posted better-than-expected results for the third quarter, mainly driven by higher demand as economy rebounds from the Covid-19 pandemic.

The company said its net loss for the quarter narrowed to 784.7 million yuan, as compared to 2.34 billion yuan in the comparable period last year. On non-GAAP basis, the company reported earnings of 466.4 million yuan, as compared to a loss of 1.66 billion yuan, one year ago. 

Revenue for the quarter came in at 14.21 billion yuan, up 89 percent from the same period last year. Analysts on average were looking for revenue of 12.34 billion.

Chief Executive Officer at Pinduoduo, Mr. Lei Chen said in a statement “this quarter we continued to invest in user engagement, which resulted in strong growth of MAUs and active buyers, our strategic priorities are informed by the changes in consumer habits that we observe and anticipate. We continue to innovate in order to meet such needs, especially in the agricultural industry.”

Pinduoduo’s gross merchandise volume jumped to 1.5 trillion yuan, representing a surge of 73 percent as compared to last year. Average monthly active users increased by 50 percent to 643.4 million, while active buyers climbed 36 percent to 731.3 million.

The company said that its operating costs were 12,245.4 million yuan in the quarter, higher than 8,472.6 million yuan in the same period last year. 

Pinduoduo (NASDAQ: PDD) shares made a new 52-week high of $138.27 following the quarterly results. The stock is currently trading on heavy volume of 17 million shares, versus daily average volume of around 7.9 million shares. PDD stock has performed well so far this year. Its share price climbed nearly 250 percent on year-to-date basis. 


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-12 12:16

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.

PDD


2 China Stocks to Buy While Others are Fearful
Many of these stocks are at their cheapest levels in years, and yet investors simply do not want to deal with the uncertainty.
By Mike Sakuraba | 2 months ago

Revisiting China: the recent government crackdowns
Back in April, I wondered if China stocks were untouchable given the current climate where AliBaba (NYSE:BABA) founder Jack Ma went missing from the public eye.
By Mike Sakuraba | 4 months ago

Are China Stocks Untouchable Right Now?
Much has been made about the recent performance of Chinese companies as some unknown headwinds are blowing in their direction
By Mike Sakuraba | 7 months ago

What the Omicron Variant Means for Stocks
Investors woke up to a bloody day on the markets on Black Friday, and it wasn’t because Wall Street was having a sale on stocks.
By Mike Sakuraba | 3 days ago

2 Stocks on sale for Black Friday
Thanksgiving is a wonderful time of year for family, friends, and good food. It has also become the precursor to Black Friday, the biggest retail week of the year.
By Mike Sakuraba | 6 days ago

Is Rivian a Buy?
If anyone tells you that IPOs are mini bubbles and volatile to invest in, you should probably believe them.
By Mike Sakuraba | 1 week ago