Shares of PDD Holdings rose Tuesday after the online retailer reported quarterly results that far exceeded Wall Street expectations. The competitor to both Alibaba and Amazon revealed amazing growth.
PDD reported third-quarter earnings of CNY11.61 (US$1.64) per share on revenue of CNY68.8 billion (US$9.7 billion). That far exceeded estimates of analysts surveyed by FactSet, who expected earnings of 8.95 yuan per share on revenue of 55.2 billion yuan.
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Shares of PDD Holdings rose Tuesday after the online retailer reported quarterly results that far exceeded Wall Street expectations. The competitor to both Alibaba and Amazon revealed amazing growth.
PDD reported third-quarter earnings of CNY11.61 (US$1.64) per share on revenue of CNY68.8 billion (US$9.7 billion). That far exceeded estimates of analysts surveyed by FactSet, who expected earnings of 8.95 yuan per share on revenue of 55.2 billion yuan.
“We are committed to generating value through innovations, which form the basis of our high-quality development,” Li Chen, Chairman and Co-CEO, said in a statement. “We have continued to invest decisively in areas such as agricultural technology, supply chain technology and core R&D capabilities.”
PDD owns discount online retail platforms Pinduoduo in China and Temu internationally. This makes it a competitor to Alibaba, the dominant Chinese e-commerce player, as well as Amazon.
With earnings up 35% and revenue up 94% in the third quarter from a year ago, PDD is growing at a rate that would make any other online retail player jealous. PDD’s US-listed American depositary receipts rose 17% in Tuesday trading.
Walmart’s influence may be the reason. Amid a major economic slowdown in China and against the backdrop of a softer consumer landscape in the United States, Pinduoduo and Temu – which are attracting customers with deep discounts – appear to be making inroads, while maintaining strong profitability.
Write to Jack Denton at [email protected]
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