Pinduoduo stock hits 1-year high amid Q3 earnings beat

Yahoo Finance Live checks out Pinduoduo shares after reporting its latest earnings report.

Video transcript

[AUDIO LOGO]

JARED BLIKRE: And my play is Pinduoduo, which shot up to a one-year high-- almost to the day-- after nearly quadrupling its 2021 third quarter profits per ADR and besting the Street's estimates by 80%. Citi, which rates the Chinese e-commerce play a buy with a price target of $79, they're saying that it is results-- they mark a second quarter-- the second quarter of blowout results were despite a difficult COVID macro environment.

Quote, "Revenue and earnings grew more than expected." Also highlighting that, quote, "The massive profit beat once again demonstrates its high operating leverage of the marketplace model." And just looking at a multiyear chart here on the YFi Interactive, we can still see it's mired in the bottom end of its range. But this stock has really shot up over the last month. And let me just show you a two-month chart here-- there we go, boom-- up about 17 and 1/2%.

- And, Jared, that's a stock, too, the Street loves. I was taking a look earlier. 50 buy ratings, three hold ratings, zero sells. Not very often you see that much of a consensus on a stock. Not that much upside that they see, though, about 20%, but I was still impressed by that.

JARED BLIKRE: Yeah, a lot of those analysts Chinese analysts. So take that with a grain of salt as well.

DAVE BRIGGS: Yes.