7/25/2023 0 Comments Pin duo duo ipoPlus, the company is now moving into other areas that could prove even more profitable for the enterprise. Somehow, Pinduoduo managed to eke out a profit. Due to the pandemic, infrastructure and logistics are becoming major issues for e-commerce companies. Management deserves a lot of credit for trimming costs in the current environment. ![]() In addition, Pinduoduo’s GMV finished at more than RMB2,441 billion last year and surged 46% compared with 2020. However, the company did net RMB6.6 billion from a previous loss thanks to lower costs and a one-time rebate from a service provider. This was also the company’s slowest growth since going public. Total revenue was RMB27.2 billion, just 3% higher and lower than the RMB29.8 billion forecasted. Pinduoduo has released its revenues for the December quarter. Earnings Miss the Mark, but There Are Silver Linings Therefore, if you are risk-tolerant, PDD may be a great addition to your portfolio. It is an underserved niche that will continue to deliver strong tailwinds for this one. Pinduoduo made its name by selling good quality goods for low prices to their customers. However, the company offers a compelling long-term growth story. It’s the third straight quarter that it disappointed investors. Pinduoduo announced revenue that missed analysts’ estimates due to the economic slowdown in China. However, the latest earnings are definitely a dampener on investor sentiment. However, due to the company’s efforts, it has diversified into other offerings, putting into direct competition with Alibaba ( BABA). Many people in China have thought that Pinduoduo is only for Chinese citizens who live in less-developed areas. I believe the company is worth investing in and has shown a lot of potential in the recent past. ![]() Interestingly, considering the positive price momentum post the report, the markets seem to be thinking the same. Pinduoduo is a deeply discounted e-commerce play with an aggressive growth strategy. However, if you are also looking to jump ship, it may not be the best time. When China’s growth slows down and geopolitical tensions rife worldwide, investors do not need more reasons to exit their position in an unprofitable company. I remain bullish on Chinese e-commerce company Pinduoduo ( PDD) despite posting mixed earnings.
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