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.

Pinduoduo Inc. (PDD) shares hit new 52-week high after strong Q3 performance

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.

Rate this article

positive
negative
Published On
2020-11-12 12:16

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


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 1 month ago

2 Stocks to Load Up On During This Correction
Another volatile week for markets and investors are starting to feel a little uncomfortable.
By Mike Sakuraba | 1 month ago

2 Earnings to Watch for Next Week
This article is merely meant to talk about two companies that I’ll have my eyes on for earnings.
By Mike Sakuraba | 1 month ago

2 Stocks That Could Explode in Q2
Here are two stocks that I think could explode in the second quarter.
By Mike Sakuraba | 1 month ago

2 Trillion Dollar Companies in the Making
One thing for certain about these two companies is that I see the potential in how they can grow.
By Mike Sakuraba | 1 month ago

Is Tesla Back? Has TSLA Stock Finally Bottomed?
Tesla Stock Analysis: Robo Taxis to the Rescue?
By Mike Sakuraba | 1 month ago

2 Stocks to Buy During an April Pullback
Here are 2 stocks I’d buy during an April pullback.
By Mike Sakuraba | 1 month ago

TSM Stock: Is This The True Winner of the AI Race?
TSM’s stock has gained nearly 40% this year which is about half of NVIDIA has returned.
By Mike Sakuraba | 1 month ago