PDD - Pinduoduo Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
42.76
+1.44 (+3.48%)
At close: 4:00PM EST
Stock chart is not supported by your current browser
Previous Close41.32
Open41.82
Bid42.84 x 2200
Ask42.90 x 1100
Day's Range41.57 - 43.09
52 Week Range18.46 - 45.25
Volume6,443,359
Avg. Volume7,643,106
Market Cap49.703B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-2.09
Earnings DateNov 20, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est39.16
  • How Pinduoduo Stock Showed Power Off The Lows Of A Base Amid The Trade War
    Investor's Business Daily

    How Pinduoduo Stock Showed Power Off The Lows Of A Base Amid The Trade War

    Pinduoduo is one of the top Chinese stocks in the current stock market rally. The stock showed tremendous power ahead of its recent breakout.

  • Singles' Day Bonanza a Prelude to Holiday Season: 5 Picks
    Zacks

    Singles' Day Bonanza a Prelude to Holiday Season: 5 Picks

    After a successful Singles' Day, American retailers expect a smashing holiday season.

  • InvestorPlace

    7 Earnings Reports to Watch Next Week

    Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar heats up again next week. Retail earnings reports take center stage, but next week's earnings also include other companies on the same fiscal calendar (with years ending on or around Jan. 31).For retail in particular, earnings reports look key. Increasingly, there's a "now or never" aspect to the more challenged categories in the industry like department stores and mall retailers. A macroeconomic expansion will reverse at some point. And the holiday season this year is six days shorter, adding a potential headwind.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor that group, it may be forward guidance rather than backward-looking numbers that drive trading. Positive outlooks despite the compressed shopping period would drive buying in a group that still looks like one of the cheapest in the market. Soft guidance, however, could be yet another negative catalyst for many stocks that trade at or near multi-year lows.Several larger retailers -- the ones that can move entire sectors on their own -- report fiscal third-quarter numbers next week as well. Meanwhile, a pair of growth stocks that have gone in different directions could give clues as to trading in a group that's been shaky despite broad market strength. * 10 Cheap Stocks to Buy Under $10 This is a week that can shape trading for the rest of the year. With broad markets at all-time highs, next week's earnings could drive further strength or red flags. They could also support what looks like a long-awaited shift from growth to value. On both fronts, these are the seven key earnings reports to watch next week. Home Depot (HD)Source: Jonathan Weiss / Shutterstock.com Earnings Report Date: Tuesday, Nov. 19, before market openIn terms of broad market impact, Home Depot (NYSE:HD) has the most important report on the earnings calendar this week. Home Depot's dominance in home improvement makes it a bellwether for construction spending by both consumers and professionals. That in turn means Home Depot earnings can move stocks in and around the housing industry.That impact will be amplified by recent trading in housing and construction stocks. HD stock itself is near an all-time high. The iShares U.S. Home Construction ETF (BATS:ITB), my pick for the Best ETF of 2019, has gained 50%, and sits barely off its own peak reached briefly in early 2018.On both fronts, there's some cause for caution. Both Home Depot stock and the sector, as measured by the exchange-traded fund, have flattened out in recent sessions. HD stock in particular seems to have a questionable valuation, as investors are treating it more as a defensive play than the cyclical stock it is. The earnings multiples assigned stocks in the rest of the industry have expanded significantly in the last eleven months.To support rising share prices, both Home Depot and the industry need a blowout report, or something close, on Tuesday morning. And given that Home Depot actually cut its guidance after its Q2 report in August, there's an obvious risk that Home Depot's Q3 can lead the group lower. TJX Companies (TJX)Source: Joe Hendrickson / Shutterstock.com Earnings Report Date: Tuesday, Nov. 19, before market openThere's really just one objective for TJX Companies (NYSE:TJX) with its Q3 release on Tuesday morning. It's the same objective as it's been for TJX earnings reports for a couple of years now: no surprises.After all, off-price has been surprisingly immune to the challenges facing other brick-and-mortar retailers. Online penetration remains minimal. Same-store sales continue to rise at a steady clip. As a result, after sideways trading in 2016-2017, TJX stock has rallied nicely and returned to its place as one of the market's great long-term investments. * 7 Under-the-Radar Retail Stocks to Buy Now At the moment, off-price is the one retail category that investors trust almost unconditionally. TJX needs to keep it that way. A similarly strong report from rival Ross Stores (NASDAQ:ROST) on Thursday afternoon would help. Good numbers likely will lead to post-earnings upgrades by Wall Street -- TJX is nearing the average target, and ROST actually is above it -- and keep the rally going. Anything less, however, and the bulletproof nature of off-price may be questioned again. Lowe's (LOW)Source: Helen89 / Shutterstock.com Earnings Report Date: Wednesday, Nov. 20, before market openLike Home Depot, Lowe's (NYSE:LOW) has an important third-quarter earnings release next week. Lowe's Q3 doesn't have quite the same potential to move the market given its smaller share relative to Home Depot. And its ongoing turnaround suggests that strength, or weakness, in Lowe's results may have more to do with operational changes within the company than broader trends affecting the industry.That said, it's precisely because of that turnaround that Q3 numbers are important. LOW stock tanked after first-quarter results undercut optimism toward the company's new strategy, and soared after second-quarter numbers resurrected bullish sentiment.From that sense, Q3 is a bit of a rubber match. Another strong result suggests the company is gaining traction. A weak report relative to Home Depot, however, confirms Lowe's second-place status. The LOW stock price is trying for the fourth time to clear $115 and hold its gains. That won't happen without good news on Wednesday morning. Target (TGT)Source: jejim / Shutterstock.com Earnings Report Date: Wednesday, Nov. 20, before market openLike Lowe's, Target (NYSE:TGT) reinvented itself to try and compete with the category leader, in its case Walmart (NYSE:WMT). Those efforts have been a roaring success so far: TGT stock has gained 64% this year thanks in large part to a 20.4% spike after a blowout second-quarter report in August. * 7 Tech Stocks to Buy for the Rest of 2019 For Q3, Target simply needs to keep the momentum going. With the company's role in the new omni-channel world seemingly secure, and valuation reasonable at 16x forward earnings, there's room for upside if Target simply can avoid a stumble in the third quarter and give a reasonably positive outlook for the key holiday season. But after the big gains, and with investors clearly convinced Target is a legitimate rival to Walmart, anything less could lead to a significant selloff. Pinduoduo (PDD)Source: madamF / Shutterstock.com Earnings Report Date: Wednesday, Nov. 20, before market openThird-quarter results from Chinese e-commerce play Pinduoduo (NASDAQ:PDD) likely will echo across the market next week. Pinduoduo provides increasingly stiff competition to JD.com (NASDAQ:JD), who reports tomorrow. A big quarter from Pinduoduo that follows any stumble from JD.com could knock JD shares from their current 52-week high.Trading in PDD stock after Wednesday's report might also highlight investor appetite for high-flying growth names. Even with a recent pullback, PDD has more than doubled since July. We've seen several similar high-quality growth stocks decline on little or no news, with Shopify (NYSE:SHOP) and Roku (NASDAQ:ROKU) the two highest-profile examples. If investors are willing to pay 70x forward earnings for PDD even with China and trade war risks, that might be a sign that broader demand for growth stocks will return.And for PDD itself, this is a big report. Sales increased 228% in the first quarter and 159% in Q2. The Street is looking for growth of 124% in Q3. Obviously, there's not much room for error, particularly given the existing dominance of Alibaba (NYSE:BABA) and JD.com in the market. A big quarter from Pinduoduo establishes PDD stock as the country's preeminent growth play. Anything less, and the 100%-plus gains seen in the last four months can quickly, and sharply, reverse. Macy's (M)Source: digitalreflections / Shutterstock.com Earnings Report Date: Thursday, Nov. 21, before market openDepartment stores simply need some good news, and Macy's (NYSE:M) would be the best company to deliver it. It's still the best-known and most widely held stock in the group. And its struggles of late give it the most potential to improve both in terms of its operations and its stock price.After all, M stock in late August touched a nine-year low. The few bulls left often focus on the value of the company's real estate rather than its operations.It might seem like there is some hope for Macy's given a report from one of its peers. Dillard's (NYSE:DDS) gained 14% in early trading Thursday after its third-quarter earnings report beat estimates. But Dillard's same-store sales stayed flat, with profit improvement seemingly attributable more toward corporate belt-tightening than customer (and pricing) strength. The post-earnings spike may have come from a short squeeze rather than sustainable investor optimism. * 7 Large-Cap Stocks to Give a Wide Berth For long-term gains, the category probably needs more than that from Macy's and from Kohl's (NYSE:KSS), who also reports next week. In this macro environment, department stores need to be able to drive some growth. If they can't do so now, investors rightly will wonder if they ever will. Splunk (SPLK)Source: Michael Vi / Shutterstock.com Earnings Report Date: Thursday, Nov. 21, after market closeOf all the earnings reports next week, fiscal Q3 results from big-data play Splunk (NASDAQ:SPLK) might be the most important without seeming like it. As noted relative to PDD, growth stocks have somewhat oddly struggled despite rising broad markets. SPLK stock hasn't been immune: It's pulled back about 16% from late July highs.And as I wrote last month, this is a stock that looks like an interesting test of just what valuation investors are willing to pay. SPLK hardly looks cheap on an absolute basis at nine times revenue and 52x forward earnings. But those multiples are not out of line with those that growth stocks have received in recent years.In other words, with a strong report Splunk stock can rally -- if investors again are willing to pay up for growth. But if those same investors fade an earnings beat, that's another piece of evidence that investor preferences are shifting to value over growth. Right now, sentiment doesn't seem particularly bullish: SPLK traded down 5% on Thursday thanks to a downgrade from smaller firm Cleveland Research.A selloff in SPLK in regular trading Friday might not make headlines. But it could be important. It would bode poorly for growth names, who are increasingly likely victims of tax-loss selling over the last few weeks of 2019. In that sense, the Splunk earnings report isn't going to move markets, but it might provide a valuable clue as to where those markets are going to move for the rest of the year.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy With 100% Upside Potential * 7 Reasons to Buy Microsoft Stock Now * 3 Consumer Staples Stocks to Buy for Conservative Investors The post 7 Earnings Reports to Watch Next Week appeared first on InvestorPlace.

  • Five Chinese startups you should know about
    MarketWatch

    Five Chinese startups you should know about

    Beyond Alibaba and Tencent, lesser known privately held Chinese startups have made waves recently, with rapid growth and global ambitions. Here are five you should know about.

  • Factors Likely to Decide JD.com's (JD) Fate in Q3 Earnings
    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.

  • What's in Store for Applied Materials' (AMAT) Q4 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.

  • Alibaba wants to go 'beyond China' as it posts record Singles Day sales
    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. 

  • Alibaba Seals $38 Billion Singles’ Day Sales Record
    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.

  • Singles' Day Set to Break Record This Year: 5 ETF Deals
    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.

  • Stocks To Buy: Is It Time To Buy Or Sell These Large-Cap Stocks?
    Investor's Business Daily

    Stocks To Buy: Is It Time To Buy Or Sell These Large-Cap Stocks?

    Looking for stocks to buy? Get analysis of large-cap stocks like Amazon, Alibaba and Dow Jones stocks GE and Microsoft to see if it's time to buy — or sell.

  • Overstock (OSTK) to Report Q3 Earnings: What's in Store?
    Zacks

    Overstock (OSTK) to Report Q3 Earnings: What's in Store?

    Overstock's (OSTK) third-quarter results are likely to reflect strength across retail and blockchain businesses.

  • Dolby (DLB) to Report Q4 Earnings: What's in the Offing?
    Zacks

    Dolby (DLB) to Report Q4 Earnings: What's in the Offing?

    Dolby's (DLB) fiscal fourth-quarter financial performance is likely to have benefited from solid licensing business.

  • Dow Jones Futures Fall On Hong Kong Protests; Alibaba Singles Day Sales Strong
    Investor's Business Daily

    Dow Jones Futures Fall On Hong Kong Protests; Alibaba Singles Day Sales Strong

    Dow Jones futures: Alibaba Singles Day sales hit new records, but China markets sold off after police fired on Hong Kong protesters.

  • Why Are Millennials Dumping This Hot Stock?
    Investor's Business Daily

    Why Are Millennials Dumping This Hot Stock?

    Millennials are known for doing things a little differently. And that's certainly true with how they're handling top stock, Chinese e-commerce company Pinduoduo.

  • Barrons.com

    Singles Day Is China’s Version of Black Friday—Just a Lot Bigger

    The one-day shopping extravaganza started by Alibaba takes place every Nov. 11, and like so much about China, the numbers are breathtaking: well over $30 billion in sales to 500 million buyers. And it has Taylor Swift, too.

  • Singles Day 2019: Here's what to expect from Alibaba's shopping extravaganza
    Yahoo Finance

    Singles Day 2019: Here's what to expect from Alibaba's shopping extravaganza

    Chinese consumers are getting their wallets ready to fuel Alibaba's annual one-day shopping event.

  • Bloomberg

    Alibaba Spends $3.3 Billion to Raise Stake in Delivery Arm

    (Bloomberg) -- Alibaba Group Holding Ltd. will spend $3.3 billion to raise its stake in Cainiao, in an effort to exert more control over the logistics subsidiary that underpins its sprawling e-commerce empire.The Hangzhou-based company will lift its stake in Cainiao to 63% from 51% by subscribing for newly issued shares in its latest financing round and buying existing stock from another holder, the company said on Friday.Six-year-old Cainiao is the rapidly growing business that sits at the heart of Alibaba’s expansion -- both in China and abroad. It oversees a coterie of at least a dozen shipping partners, orchestrating deliveries carried out by millions of people across the country.The increased stake could help Alibaba expand deeper into the business of setting up and controlling its own infrastructure, much like Amazon.com Inc. Billionaire Jack Ma said in May last year that he wanted to invest 100 billion yuan ($14 billion) in logistics without giving a time frame.Read more: Alibaba’s Ma Says to Invest at Least 100B Yuan on LogisticsCainiao’s revenue, after elimination of inter-company transactions, rose 48% to 4.8 billion yuan in the quarter ended September.The logistics giant is expanding at a rapid clip, keeping pace with its parent’s online retail business. It’s developed a neighborhood delivery service with a combination of stations and self-pickup lockers, known as Cainiao Posts, a key to bolstering last-mile delivery. The daily package volume handled by Cainiao Post doubled in September, compared with last year, according to Alibaba’s filings.Cainiao’s Guoguo app, which offers crowd-sourced parcel pick-up and delivery services, had 100 million annual users at of the end of August. Its parcel volume more than doubled in the September quarter, compared with last year, according to its filing.Alibaba created Cainiao with the department-store chain Intime Retail Group Co. and industrial conglomerate Fosun International Ltd. The trio led an initial investment of 100 billion yuan into the company to build out its logistics network.The company has since managed a delicate relationship with its delivery partners, as players jostled for business and valuable user data. Alibaba’s facing increasing competition in delivery from Pinduoduo Inc., China’s No. 3 platform. Pinduduo is seeking to take control of its own data by developing in-house shipping information technology.Read more: E-commerce Upstart Pinduoduo Wants its Data Back From Alibaba(Updates with details on logistics from the third 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, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • China regulator warns e-commerce platforms to stop monopolistic practices
    Reuters

    China regulator warns e-commerce platforms to stop monopolistic practices

    China has warned top e-commerce platforms including Alibaba and JD.com to stop practices that could be deemed as monopolistic, as industry frictions grow ahead of the country's banner Singles Day shopping event on Nov. 11. State news agency Xinhua reported on Tuesday that China's State Administration for Market Regulation (SAMR) called more than 20 platforms to a meeting and urged them to stop a practice that requires merchants to sign exclusive cooperation agreements preventing them from selling products on rival platforms. The regulator's move comes as Alibaba's Tmall marketplace has in recent weeks been accused by a number of competitors and merchants of adopting such a practice, which is also known as "choosing one from two".

  • Hot Rocket Pinduoduo Stock Lifts Into Q4 Leadership
    Investopedia

    Hot Rocket Pinduoduo Stock Lifts Into Q4 Leadership

    Chinese e-commerce upstart Pinduoduo has rallied more than 30% so far in the fourth quarter and could add to gains in coming months.

  • GlobeNewswire

    Pinduoduo to Report Third Quarter 2019 Unaudited Financial Results on Nov 20, 2019

    SHANGHAI, China, Nov. 04, 2019 -- Pinduoduo Inc. (“Pinduoduo”) (NASDAQ: PDD), an innovative and fast growing “new e-commerce” platform and one of the leading Chinese e-commerce.

  • As JD Stock Meets Resistance, New Competitor Pinduoduo Surges
    InvestorPlace

    As JD Stock Meets Resistance, New Competitor Pinduoduo Surges

    Since its 2014 initial public offering, JD.com (NASDAQ:JD) has been measured against its rival Alibaba (NYSE:BABA). For its part, JD stock has been on a bumpy upswing for most of the year, but that's not the only similarity.Source: Sundry Photography / Shutterstock.com Alibaba's share of the market is much larger, which has made it to some investors the simplest play on long-term growth in China. But JD's logistics expertise and room for market share gains have given it potentially higher growth, making it (usually) a higher-reward, if higher-risk play.For public investors, in particular, JD stock and BABA stock basically have been the only choices in Chinese eCommerce. Vipshop Holdings (NYSE:VIPS) has had a more narrow focus on the discount space and clearly has lost market share in recent years. (Before a recent rally, VIPS stock had fallen 80%-plus from 2015 highs.). Other large retailers like Gome and Suning are privately held.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the two-horse race has a new entrant: Pinduoduo (NASDAQ:PDD). Pinduoduo has existed for less time than JD.com has been public, but its growth has been extraordinary. And with JD stock again hitting resistance at $32 ahead of third-quarter earnings next month, it's fair to wonder if that growth is starting to impact investors' perception of, and appetite for, JD shares. When Will Pinduoduo and JD.com Collide?From a broad perspective, Pinduoduo and JD.com don't necessarily look like competitors. Both companies are Chinese e-commerce plays, admittedly. But JD.com has taken a broad approach to online retail. (It, as I and others have noted, is much more "the Amazon.com (NASDAQ:AMZN) of China" than is Alibaba, which often is given that designation.) It owns its inventory, unlike Alibaba and Pinduoduo. It's building out a world-class logistics network. * 7 Stocks to Buy in November Pinduoduo, meanwhile, has more of a niche business model. It's targeted rural and smaller cities. Its selection tends toward the lower end in terms of price, to the point that the company remains dogged by a reputation for counterfeit goods. With the help of Tencent Holdings' (OTCMKTS:TCEHY) WeChat the company offers special buys for groups.But the two companies likely are heading for more direct competition. On recent conference calls, JD.com management repeatedly has talked up its effort to move into "lower-tier" (ie. smaller) cities. Meanwhile, Pinduoduo is going in the opposite direction, targeting urban consumers. It's even sold the Apple (NASDAQ:AAPL) iPhone 11, a noted departure from its core assortment.In other words, each company is moving onto the other's turf. So while the battle between JD.com and Alibaba remains important, the fight against Pinduoduo now matters for JD stock as well. Who Will Win?As far as stock prices go, PDD is the clear winner of late. While JD stock has traded sideways for seven months, Pinduoduo stock has more than doubled since July. At Wednesday's closing prices, Pinduoduo actually has a modestly higher market capitalization than does its rival.In terms of the businesses, JD.com remains ahead. JD.com no longer discloses gross merchandise value, the total value of goods ordered on the platform. But 2018 GMV for Pinduoduo was barely one-fourth that of JD.com. (The revenue gap is far larger, but that's not an apples-to-apples comparison. Since JD.com owns its inventory, it books 100% of a sale as revenue, while Pinduoduo does not.)But Pinduoduo no doubt is closing on JD.com for second place in eCommerce market share. Its revenue increased 159% year-over-year in the second quarter. JD.com's sales grew a still-impressive, but far smaller, 23%. Meanwhile, Pinduoduo actually has more users, even if the GMV gap shows that those users clearly spend less on that platform than do JD.com shoppers.And there's some evidence that Pinduoduo is starting to become a real rival to both JD.com and Alibaba. CEO Colin Huang said on the Q2 conference call that 48% of GMV in June came from Tier 1 and Tier 2 cities, up from 37% as recently as January. He claimed that competitors were framing its products as "cheap, because they are low-quality or even knockoffs, [but] today our results have firmly demonstrated otherwise."Meanwhile, last week Huang reportedly claimed that Pinduoduo had surpassed JD.com in gross merchandise value. Given figures released by both companies, that seems unlikely (and, according to the report, Huang didn't cite exact numbers). But Pinduoduo has aimed to move its GMV past that of JD.com for some time now, and at the least it's making progress toward that goal.Between 150%-plus revenue growth and the expansion into JD.com's existing territory, Pinduoduo clearly is becoming a threat. The question for JD stock is to what extent that threat might be priced in. The Case for JD StockIt's possible Pinduoduo's rise -- again, the company was founded only in 2015 -- has impacted JD stock of late, particularly with the recent impressive top-line performance from Pinduoduo. JD.com shares have rallied nicely so far this year, gaining 51%. But the stock threatened an all-time low in December, and it still sits over 35% below late 2017 highs.And at these levels, JD stock still looks somewhat attractive. It's managed to expand margins nicely this year, and should do so again next year. The current price just below $32 suggests just a 26x multiple to 2020 consensus earnings per share estimates. In this market, that's not a terribly aggressive valuation, particularly if the company can keep growing revenue by a double-digit percentage clip.Even with a rising Pinduoduo, that target should be reachable. After all, Chinese e-commerce is not a zero-sum game. Despite trade war pressures, the overall economy continues to rise. E-commerce penetration should increase for some time to come. There is room for more than one winner in China, just as there is in the U.S. And both companies have ambitions to expand internationally, even if those plans remain years off.Meanwhile, JD.com has responded to Pinduoduo with a text-based app of its own, Jingxi. Jingxi too will have access to WeChat, a notable edge given that Tencent has blocked shopping links from Alibaba's Taobao for years.That said, resistance for JD stock has held firmly at $32 for months now. And as I wrote last month, there are risks to the stock. Pinduoduo increasingly looks like another one. It's going to aggressively compete for market share. In the process, it can drive pricing downward, which can resurrect the margin concerns that plagued JD.com stock in 2018.I still like JD stock long-term, and I'd bet the stock will break through resistance at some point. But this is not a simple, 'set it and forget it' play, and that's doubly true given Pinduoduo's rise. JD.com investors will be watching their company's earnings closely next month -- but they should take a long look at Pinduoduo's results as well.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Buy-and-Hold Stocks to Play Investing's Biggest Trends * 7 Stocks to Buy in November * 5 Strong Buy Stocks Under $5 With Massive Upside Potential The post As JD Stock Meets Resistance, New Competitor Pinduoduo Surges appeared first on InvestorPlace.

  • China's online retailers take the battle to the hinterlands
    Reuters

    China's online retailers take the battle to the hinterlands

    Started four years ago by a former Google engineer, Pinduoduo has become one of China's biggest retail disruptors, breaking the dominance of Alibaba and JD.com by persuading users like Wu, who live in China's smaller cities, to start shopping online. Alibaba and JD.com have for years tried to unleash rural China's spending power, teaching residents how to use their online platforms and using drones for deliveries to remote spots, with mixed results.

  • Benzinga

    Option Traders Betting Big On Pinduoduo Following Latest Trade Negotiation News

    Pinduoduo Inc (NASDAQ: PDD) shares traded higher on Friday following reports that the U.S. and China are in the process of finalizing some parts of a trade deal. Pinduoduo has seemingly been impervious to negative trade war headlines up to this point, up 136% over the past year, but a trade deal would certainly remove a major uncertainty for the second-largest Chinese e-commerce company. On Friday morning, Benzinga Pro subscribers received two option alerts related to unusually large trades of Pinduoduo.

  • Barrons.com

    China Has Hundreds of Super-Start-Ups. For Now, They’re Playing a Waiting Game.

    China’s unicorns suffer from many of the same problems as their U.S. counterparts—and have a number of other woes beside. But so far, many of them have been patient.