PDD - Pinduoduo Inc.
| Previous close | 38.13 |
| Open | 38.27 |
| Bid | 37.03 x 800 |
| Ask | 37.07 x 1300 |
| Day's range | 36.97 - 38.34 |
| 52-week range | 18.46 - 45.25 |
| Volume | 2480592 |
| Avg. volume | 7,623,989 |
| Market cap | 43B |
| Beta (3Y monthly) | N/A |
| PE ratio (TTM) | N/A |
| EPS (TTM) | -2.09 |
| Earnings date | 20 Nov 2019 |
| Forward dividend & yield | N/A (N/A) |
| Ex-dividend date | N/A |
| 1y target est | 38.57 |
- Zacks
Amazon to Boost Presence in China Via New Store on Pinduoduo
Amazon (AMZN) plans to open a pop-up store on the Chinese e-commerce platform, Pinduoduo, in a bid to expand the e-commerce business in China.
- IPO-Edge.com
Mohawk Group CEO Explains What’s Wrong with Retail
Yaniv Sarig, President and CEO of Mohawk Group Holdings, Inc. By Yaniv Sarig For any retail executive, a simple glance at sales trend reports can cause massive handwringing about the state of the retail industry. And for sure, there is reason for some of this doom-and-gloom. On the surface, the statistics can be daunting. In […]
- Zacks
Pinduoduo (PDD) in Focus: Stock Moves 7.6% Higher
Pinduoduo (PDD) saw a big move last session, as its shares jumped nearly 8% on the day, amid huge volumes.
- Reuters
Amazon opens pop-up store on China's Pinduoduo until year-end
Amazon.com Inc on Monday said it will open a pop-up store on Chinese e-commerce platform Pinduoduo Inc that will run until the end of December and carry a selection of about 1,000 products from overseas. The move, which was initially reported by Reuters on Sunday, points to how the U.S. firm's China strategy is evolving after it decided earlier this year to stop operating a marketplace in the country for domestic-selling merchants. Amazon had found it difficult to compete with entrenched, home-grown players such as Alibaba Group Holding Ltd's Tmall and its rival marketplace from JD.com Inc. In a sign of Tmall's dominance, Amazon opened an online store on the platform in 2015.
- Bloomberg
Amazon Teams Up With China Upstart for Black Friday Sale
(Bloomberg) -- Amazon.com Inc. is counting on a smartphone app known for cheap deals to lure Chinese consumers during the Black Friday online spree, in a partnership that extends to the end of the year.The U.S. e-commerce giant’s cross-border unit has just opened a storefront on Pinduoduo Inc., China’s No. 3 online retailer after Alibaba Group Holding Ltd. and JD.com Inc.Starting from Nov. 28, the three-day sales campaign will offer Chinese consumers a range of overseas products from Australian baby formula to luxury watches and Nintendo Switch consoles. Pre-sales for some brands are already underway for the U.S.-inspired annual shopping extravaganza.PDD and Amazon said their partnership would continue until the end of December. In a statement, Amazon said its pop-up store on PDD will provide about 1,000 branded foreign products.In July, Amazon shut down its Chinese marketplace business in yet another example of how U.S. tech companies struggle to contend with local competitors in China. The company still runs businesses including Kindle e-books and international operations in the country. Kindle has flagship stores on Alibaba’s Tmall, JD and PDD.While Chinese buyers are accustomed to splurging during shopping festivals created by local retail giants, they also seek out bargain foreign products during Black Friday. The tie-up will help Amazon tap the half billion annual active buyers on PDD’s addictive app.It comes on the heels of Alibaba’s Singles Day promotion on Nov. 11, which has overtaken Black Friday to become the world’s biggest shopping event. Alibaba logged a record $38 billion of purchases during the 24-hour shopping marathon this year. JD and PDD also launched similar campaigns around that date.Founded in 2015, PDD has carved out a niche with social commerce that encourages making purchases with others in return for generous discounts. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as rivals Alibaba and JD delve into PDD’s base of smaller cities. Last week, the company posted worse-than-expected earnings for the third quarter, triggering its biggest share drop since its July 2018 debut. Its partnership with Amazon now offers the company a chance to recover some of the lost ground.“The move works disproportionately in Pinduoduo’s favor,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. “It adds credence to its claims that it’s a space for consumers to buy branded goods, and accelerates internal plans to be active in cross-border e-commerce.”(Updates with Amazon statement in fourth paragraph)\--With assistance from Matt Day.To contact the reporter on this story: Zheping Huang in Hong Kong at zhuang245@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Colum Murphy, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
Amazon to open store on China's Pinduoduo marketplace on Nov. 25: source
Amazon.com Inc will open a store on Chinese e-commerce platform Pinduoduo on Monday, a source familiar with the matter said, in a sign of how the U.S. firm's China strategy is evolving after it shut its own online store in the country. Amazon closed its Chinese marketplace in July, having found it difficult to gain traction in the face of intense competition from entrenched, home-grown rivals like Alibaba Group Holding's Tmall marketplace and JD.com. It said at the time it would increase its focus on selling goods from abroad to Chinese buyers via its global platform.
- Bloomberg
Alibaba's Hong Kong Share Sale Presents a $43 Billion Dilemma
(Bloomberg Opinion) -- After its $11.2 billion Hong Kong share sale, Alibaba Group Holding Ltd. will be sitting on $43 billion in cash. That sounds like a great problem to have. Only one publicly listed, non-financial company has more: Apple Inc., at $49 billion.Then you realize that management literally has more money than it knows what to do with. Chief Executive Officer Daniel Zhang and Maggie Wu, the chief financial officer, have three choices:Do nothing. Just sit on that cash in a low-interest-rate world. Spend it. On acquisitions and marketing; historically, this has depressed margins. Give it back. Dividends, maybe, but more likely, buybacks.Let’s go through them. Sitting on that cash is really the easiest, most unimaginative thing to do. But no one says they can’t.Spending it is definitely in the cards. Alibaba said in its prospectus that it plans to use the proceeds for “driving user growth and engagement, empowering businesses to facilitate digital transformation and improve operational efficiency, and continuing to innovate.”That first point, driving growth, is really just banker-babble for marketing and acquisitions. In the past few years, Alibaba has laid out money for food delivery (Ele.me), groceries (Freshippo), logistics (Cainiao) and others. It’s also spent significantly to battle new rivals like Meituan Dianping and Pinduoduo Inc. This expenditure has been a major reason why top-line growth has stayed so strong. If not for these new revenue streams, Alibaba’s 40% growth last quarter would have been closer to 30%.(1)That “digital transformation” it talks about includes helping grocery stores getting into delivery (Taoxianda) and building out its still-unprofitable cloud business. Meanwhile, “continuing to innovate” means whatever you want it to mean.All these initiatives, while strategic and logical, have had the effect of cutting its operating margin in half over the past five years. It’s highly likely that if Alibaba continues spending at this pace, it would do so on less-lucrative businesses that could take even longer to prove profitable.Which leaves the final option. Return the money. Pause for a moment to appreciate the irony of a company selling $11 billion of shares to then turn around and buy back shares. Yet Alibaba will be listed on two major bourses — Hong Kong and New York. By using the Hong Kong money to cut the New York float, Alibaba can start to shift its investor base closer to home in China, which was a key purpose of this offering.It may sound ridiculous that a company which has climbed 22% over the past year, trades at around 24 times estimated earnings, has a return on capital of 19.7%, and return on equity of 29.8% should consider spending money to prop up its stock. Yet there are two things to consider: Its shares have moved sideways over the past two years, and there’s precedent for solid companies to do this.At the time that Apple announced an additional $100 billion buyback in 2018 (on top of more than $200 billion it had already bought in the prior six years), its return on capital was around 21.3% and return on equity around 36%. Its price-earnings of almost 18 times was near historic highs and shares had climbed 23% over the prior 12 months. A year later, it added another $75 billion to the buyback program, despite a further 21% advance in its shares and a widening of those return metrics. (To be sure, much of Apple’s rise has been due to buybacks).Buybacks can sometimes be seen as a way for troubled companies to prop up their share price, like Baidu Inc., which has dropped 38% in the past 12 months amid falling revenue and profits. Yet plenty of solid companies with great financials do the same, especially when there’s a dearth of better places to put the money. This would signal to Alibaba’s new Hong Kong investors that it’s willing to back them up, and has a war chest to do so.Sure, Alibaba doesn’t need buybacks. But it doesn’t need $43 billion in cash, either. (1) That's from removing the "others" category from Alibaba's China Commerce Retail businessTo contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Zacks
Analog Devices (ADI) to Report Q4 Earnings: What's in Store?
Analog Devices' (ADI) strength in end-markets served is likely to reflect on fiscal fourth-quarter 2019 results. However, softness in the consumer market and geopolitical uncertainty may have remained concerns.
- Simply Wall St.
Investors Who Bought Pinduoduo (NASDAQ:PDD) Shares A Year Ago Are Now Up 40%
Pinduoduo Inc. (NASDAQ:PDD) shareholders might be concerned after seeing the share price drop 26% in the last week...
- Zacks
Box (BOX) Gears Up for Q3 Earnings: What's in the Cards?
Continuous development of new products and partnerships are likely to reflect on Box's (BOX) fiscal Q3 results. However, increasing investments in research and development might have been a concern.
- Bloomberg
Pinduoduo’s Founder Loses $5 Billion Overnight as Earnings Miss Estimates
(Bloomberg) -- An epic stock rally for China’s e-commerce upstart just faltered, clipping the fortune of its founder.Pinduoduo Inc. Chairman and Chief Executive Officer Colin Huang lost almost a quarter of his fortune as the company’s stock plummeted 23% on Wednesday, according to the Bloomberg Billionaires Index. His net worth tumbled to $16.3 billion, down $4.8 billion from a day earlier.PDD’s stock drop was the biggest since it held an initial public offering in July last year, reducing this year’s gain through Wednesday to a still-respectable 40%. The sell-off was triggered by the company’s worse-than-expected quarterly results. Sales more than doubled to 7.51 billion yuan ($1.1 billion) for the three months ended September, but fell short of the average analyst projection of 7.65 billion yuan. Net loss widened to 2.3 billion yuan from 1.1 billion yuan a year earlier.The disappointing results came after arch-rivals Alibaba Group Holding Ltd. and JD.com Inc. chipped away at the Chinese e-commerce upstart’s dominant position in smaller cities.Founded by Huang in 2015, PDD has carved a niche with social commerce that encourages making purchases with others. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as Alibaba and JD delve deeper into PDD’s base of smaller cities. In September, JD rolled out a group-buying app which, like PDD, entices purchases with generous discounts.What Bloomberg Intelligence says:Despite heavy marketing expenses, the company’s marketplace model can sustain high gross margin and should lead to profit as revenue scales up.Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.PDD said in a statement that many brands and small merchants must “choose one of two” platforms to be listed, without naming rivals. “Forced exclusivity has a material impact on Pinduoduo, we had to row upstream against the pressure,” it said.Sales and marketing expenses surged 114% to 6.9 billion yuan, helping China’s No. 3 shopping app to add 64 million new active users during the quarter. Its founder signaled that the company can afford to buy growth.“When there is opportunity, we should spend our money aggressively. We shouldn’t put our money into the piggy bank,” Huang told analysts on a conference call.To contact the reporters on this story: Venus Feng in Hong Kong at vfeng7@bloomberg.net;Zheping Huang in Hong Kong at zhuang245@bloomberg.netTo contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Colum Murphy, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Agilent (A) Gears Up for Q4 Earnings: What's in the Cards?
Agilent's (A) leadership position and strength in revenue segments are likely to reflect on fiscal fourth-quarter results.
- Reuters
China's Pinduoduo posts bigger loss as costs surge; shares tumble
The company was started just four years ago but has been described by analysts as a disruptor to the dominance of Alibaba Group Holding Ltd's Taobao and JD.com Inc over China's retail sector thanks to its popularity among the country's rural residents. "We continued to invest in our users throughout the third quarter, and stepped our marketing up a notch from the second half of September," Chief Executive Officer Huang Zheng said in a statement. The company, which gained a following in China by strategies such as offering consumers deeper discounts on mostly generic products if they buy in groups, also blamed the larger-than-expected loss on the so-called "choose one from two" practices.
- Reuters
China's Pinduoduo suffers $11 billion slump in value after big loss
"We continued to invest in our users throughout the third quarter, and stepped our marketing up a notch from the second half of September," Chief Executive Officer Huang Zheng said in a statement. Huang, who owns about 45% of Pinduoduo and suffered a paper loss of about $5 billion in the stock's post-results tumble, defended the subsidies as a worthwhile investment to help expand Pinduoduo's user base and boost engagement in its app.
- Zacks
The Zacks Analyst Blog Highlights: Alibaba, The Buckle, Boot Barn, Pinduoduo and Tempur Sealy International
The Zacks Analyst Blog Highlights: Alibaba, The Buckle, Boot Barn, Pinduoduo and Tempur Sealy International
- Zacks
Singles' Day Bonanza a Prelude to Holiday Season: 5 Picks
After a successful Singles' Day, American retailers expect a smashing holiday season.
- Zacks
Factors Likely to Decide JD.com's (JD) Fate in Q3 Earnings
Strength in the e-commerce business and international expansion are likely to have driven JD.com's (JD) third-quarter earnings.
- Zacks
What's in Store for Applied Materials' (AMAT) Q4 Earnings?
Applied Materials' (AMAT) technology leadership position and strong product line in Display and Services are likely to reflect on fiscal fourth-quarter results.
- Yahoo Finance
Alibaba wants to go 'beyond China' as it posts record Singles Day sales
China’s e-commerce giant Alibaba recorded over $38.4 billion in sales in the past 24 hours.
- Bloomberg
Alibaba Seals $38 Billion Singles’ Day Sales Record
(Bloomberg) -- Alibaba Group Holding Ltd. logged more than 268 billion yuan ($38.3 billion) of purchases during its Singles’ Day bonanza, exceeding last year’s record haul after a 24-hour shopping marathon.An estimated half-billion shoppers from China to Russia and Argentina swarmed the e-commerce giant’s sites to scoop up everything from Apple Inc. and Xiaomi Corp. gadgets to Ugandan mangoes. The company again hosted a televised entertainment revue in Shanghai to run alongside the bargain-hunting, this time enlisting Taylor Swift and Asian pop icon G.E.M. to pump up sales.The world’s largest shopping event has become an annual ritual for Asia’s largest company, part showcase of commercialism and part publicity blitz. Also referred to as “Double 11” because it falls on Nov. 11, it’s closely watched by investors keen to gauge how willing Chinese consumers are to spend as economic growth threatens to slip below 6%.Tensions between Washington and Beijing continue to fuel uncertainty and roil global commerce. Among China’s largest corporations, Alibaba is expected to better ride out the storm, thanks to booming online consumption in the world’s No. 2 economy. On Sunday, Alvin Liu, a Tmall general manager, said Alibaba doesn’t expect any impact on its cross-border import business from an ongoing trade spat.“Alibaba will probably be the one that will be able to circumvent and come out from the trade war in better shape” versus Baidu Inc. and Tencent Holdings Ltd., Richard Wong, head of ICT for the Asia Pacific at Frost & Sullivan, told Bloomberg Television. “The current sentiment and confidence in terms of spending is still relatively high.”While Alibaba and its rivals routinely trumpet record sums in the event’s aftermath, it’s unclear how much Nov. 11 sales actually will contribute to the bottom line given the enormous discounting involved. A good result however could bolster Alibaba’s effort to raise as much as $15 billion in a landmark Hong Kong share sale this month, according to people familiar with the matter.Singles’ Day emerged as a uniquely Chinese antidote to the sentimentality surrounding Valentine’s Day. Emerging on college campuses across the country, it takes its name from the way the date is written numerically as 11/11, which resembles “bare branches,” a local expression for the unattached.It’s now become an excuse for people to splurge. Last year, sales at Alibaba climbed 27% to 213.5 billion yuan, equivalent to $30.7 billion at the time. This time, purchases grew 26% from the year earlier. More merchandise is sold online over the 24-hour period than during the five-day U.S. holiday buying spree that begins on Thanksgiving and ends on Cyber Monday.Alibaba’s U.S. traded shares were down 1.9% Monday to $183.70 at 11:25 a.m. in New York.Alibaba saw 100 million new users join the shopping festival this year, according to Jiang Fan, president of the company’s e-commerce marketplaces Taobao and Tmall.“This is the power of expanding into less developed regions,” he said. “We hope this event can help more factories and farmers.”Read more: Alibaba Said to Seek Up to $15 Billion in Hong Kong ListingIt’s Time for Alibaba to Slay Jack Ma’s Monster: Tim CulpanBut the company faced stiff competition this year from smaller platforms including JD.com Inc. and Pinduoduo Inc. -- the aggressively expanding upstart that’s encroaching on the market leaders’ turf. They vied for the wallets of Chinese shoppers particularly in relatively untapped rural areas. All employ heavy discounting and hard-sell tactics in the run-up to and during the 24 hours in a bid to best the previous year’s record.“Overall, we think this year will likely see a more competitive Double 11 period,” Ella Ji, an analyst at China Renaissance Holdings Ltd., said in a report. “We anticipate each platform will spend more on subsidies.”Daniel Zhang, who took over as Alibaba chairman from billionaire Jack Ma in September, pioneered the show in its present form in 2015. The Singles’ Day impresario passes the baton this year to Fan, a potential successor to Zhang himself.“Over the years, we’ve seen consumers become more diverse and younger. Each generation of consumers needs their own peers to serve them,” Zhang said in a post on Alibaba’s blog. “I think this young team is the future.”The 2019 edition came with slight twists to the formula. Alibaba, stung by criticism it harmed the environment by shipping an estimated 1 billion packages in a single day -- has enjoined its logistics arm Cainiao to set up recycling centers at 75,000 locations. It says it will also work with courier companies to pick up used boxes and wrapping.An expansion into Southeast Asia and less-developed areas in China plus newer services -- such as transactions on food delivery site Ele.me, grocery store chain Hema and travel service Fliggy -- bolstered the total. The company also brought in livestreamers including Kim Kardashian to appeal to younger buyers.Other aspects remained the same. Singles’ Day has always been an opportunity for Alibaba to test the limits of its cloud computing, delivery and payments systems. Leaving little to chance, Alibaba sent teams across the nation ahead of Nov. 11 to help myriad outlets prepare for the festival. Some 200,000 brands had been expected to participate in 2019‘s edition of the festival.“Singles’ Day is becoming popular outside of China, especially in the ASEAN region,” said Patrick Winter, Ernst & Young Asia Pacific managing partner. “You’re also seeing how it’s growing in smaller cities in China.”(Updates with new user number in tenth paragraph.)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Molly Schuetz, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Singles' Day Set to Break Record This Year: 5 ETF Deals
Investors seeking to tap Singles' Day benefits in a diversified way should focus on the following four ETFs that provide substantial exposure to the Chinese e-commerce segment.
