PDD - Pinduoduo Inc.
37.76 +0.24 (0.64%)
After hours: 7:59PM EST
| Previous Close | 37.52 |
| Open | 37.37 |
| Bid | 37.50 x 1200 |
| Ask | 37.65 x 1400 |
| Day's Range | 36.96 - 38.05 |
| 52 Week Range | 18.46 - 45.25 |
| Volume | 4012636 |
| Avg. Volume | 7,682,276 |
| Market Cap | 43B |
| Beta (3Y Monthly) | N/A |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -2.09 |
| Earnings Date | Nov 20, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 38.57 |
- InvestorPlace
JD.com Stock May Be Volatile for the Rest of the Month
Following President Donald Trump's recent declaration that he may wait to finalize a U.S.-China trade deal, stock markets are off to a volatile start in December. As investors wonder whether China-based stocks might be adversely affected by the president's statement for the rest of the month, this column will analyze the short- and long-term outlook of JD.com (NASDAQ:JD) stock, China's largest e-commerce company by revenue.Source: Michael Vi / Shutterstock.com In 2019, JD stock is up about 57%. Needless to say, JD.com has been hot this year, but in the short-run, the share price could drop due to profit-taking. JD.com's Q3 EarningsOn Nov. 15, JD.com released strong Q3 results, beating expectations from top to bottom. Its net revenue rose 29% year-over-year to $18.9 billion. Its earnings per share was 29 cents, versus analysts' average estimate of 17 cents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIts income from operations was $695.8 million, compared to a loss from operations a year ago.JD.com's YoY user growth accelerated last quarter, while its mobile user count surged 36% YoY. * 7 Hot Stocks for 2020's Big Trends Its monthly active mobile users increased 36% YoY in September. The owners of JD stock cheered the results. JD.com has a robust business model and is poised to benefit from the expanding Chinese e-commerce market. The company has about a 25% share of the nation's online retail market.JD.com also has hundreds of warehouses and thousands of delivery stations as well as fresh food stores across China. JD Logistics' revenue grew over 75% YoY in Q3. JD.com claims that approximately 90% of the unit's orders are delivered the same day or the next day. JD.com's E-commerce Strength Will Propel JD Stock HigherIn addition to being one of China's most valuable enterprises, JD.com is a member of the Fortune Global 500.Online shopping represents about 35% of China's $5.5 trillion retail market. By comparison, e-commerce in the U.S. represents about 11% of the nation's total retail sales.According to recent research by the China Center for Economic Research, "the most popular products sold online at JD are cell phones, followed by food and beverages, makeup and cosmetics, digital products, and lifestyle and travel goods."Mobile device users are still a driving force of consumer spending. China has the most mobile users in the world. And the mobile market is expected to grow further as China's cellular infrastructure improves.Although China's economy may slow further in 2020, China's GDP is still expanding at an average annual rate of at least 6%. Over the longer term, China is likely to overtake the U.S. as the world's number one economy.China's unemployment rate dropped to an all-time low of 3.6% in 2019. And average wage increases have been high enough to improve consumer sentiment. In other words, the country's growing middle class will continue to drive increases in consumer spending and the expansion of China's e-commerce market.And when Chinese citizens have more money in their pockets, they can spend more on online shopping sites like JD.com, which has already become an internet juggernaut. Short-Term Headwinds for JD.comAlthough it is hard to quantify the exact effect of continued trade wars on JD.com, the uncertainty they create will likely make JD stock more volatile in the short-run.As the economy cools off, the owners of JD.com stock will also pay more attention to JD's competitors. JD's main competitor is Alibaba (NYSE:BABA), whose Tmall and Taobao platforms are China's largest online business-to-consumer and consumer-to-consumer marketplaces, respectively.In the past few years, new players have entered the internet commerce marketplace in China. One example is Pinduoduo (NASDAQ:PDD), a Groupon (NASDAQ:GRPN)-style retailer, which launched its IPO in 2018.One of the main criticisms of JD.com by analysts over the years has been JD stock's low margins. For example, throughout 2018, JD's revenue growth slowed and its operating margins dropped. If the Chinese economy slows further, JD's growth metrics could also slow. Additionally, more companies are likely to enter the lucrative, growing Chinese e-commerce sector.Finally, political instability in Hong Kong could also negatively affect JD.com. Analyzing the Movements of JD StockJD stock has been volatile over the years. It shot up from $20 in 2014 to $50 in early 2018. Then things went downhill. In Nov. 2018, JD.com hit $19.21.Throughout 2019, the shares have recovered as the company's quarterly profits and revenue growth have improved.On Nov. 15, 2019, JD.com stock hit a 52-week high of $35.43. Currently, the stock is hovering around $33.Because of the impressive jump of JD.com over the last year, its technical indicators have become somewhat over-extended.But if you already own JD stock, you might want to stay the course and hold onto your position. Or you may also consider opening a covered call position in conjunction with buying JD stock.If you do not currently own shares of JD.com, there will likely be opportunities to pick up the stock more cheaply.However, if the U.S. and China reach a trade deal soon, JD.com, along with many Chinese stocks, are likely to rally. The Bottom Line on JD.com StockAlthough JD stock has been a strong performer in 2019, its price is still considerably lower than its all-time highs of January 2018.Since JD.com stock is a growth name, it trades on forward sales as well as the momentum provided by future expectations. The markets are likely to continue to be choppy in the next few weeks, especially since investors may decide to take profits as the year ends.The volatility of JD stock is high, giving it a broad trading range, so short-term traders should be cautious about buying the shares in coming weeks.However, long-term investors shouldn't scramble for the exits just yet. JD stock and many of the other Chinese companies listed on U.S. exchanges enable investors to benefit from the growing spending of Chinese consumers.Because of the hugeness of the Chinese market, many Chinese e-commerce companies can thrive. And there are plenty of long-term catalysts that could drive JD.com higher in the years ahead.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post JD.com Stock May Be Volatile for the Rest of the Month appeared first on InvestorPlace.
- Insider Monkey
Hedge Funds Are Crazy About Pinduoduo Inc. (PDD)
A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period […]
- 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 […]
- MarketWatch
Pinduoduo stock rises after reports of Amazon store opening
American depositary shares of Chinese e-commerce company Pinduoduo Inc. are up more than 4% in Monday morning trading following reports that Amazon.com Inc. was opening a store on its platform through the end of the year. The store will carry about 1,000 overseas products, according to Reuters, which said that the move is part of Amazon's changing strategy in China after the e-commerce giant stopped running a Chinese marketplace for domestic merchants earlier this year. Amazon didn't immediately respond to MarketWatch's request for comment on the Pinduoduo arrangement. Pinduoduo's shares sank last week following a disappointing earnings report, and they're down 14% over the past month, while Amazon's stock has risen 0.6%.
- 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
UPDATE 2-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.
- 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.
- Investor's Business Daily
Pinduoduo Earnings Disappoint; Chinese E-Commerce Giant Dives
The Pinduoduo quarterly earnings report was worse than expected, as operating expenses more than doubled. Shares of the Chinese e-commerce giant plunged Wednesday below a buy point.
- Investor's Business Daily
Dow Jones Falls 242 Points On China Trade News As This Retailer Surges From New Buy Point; Pinduoduo Hits 2 Sell Rules
Target reaffirmed budding strength in the discount retail sector as the Dow Jones Industrial Average kept losses small. Pinduoduo sold off hard.
- Investor's Business Daily
Stock Market Slips On China Tensions; Lowe's, Target Jump, But Pinduoduo Crashes
The major stock indexes were modestly lower on rising China tensions. Pinduoduo stock crashed 25% on earnings.
- Benzinga
Benzinga Pro's Top 5 Stocks To Watch For Wed., Nov. 20, 2019: TSLA, PDD, CRM, TGT, CGC
Tesla (TSLA) - Shares continued Tuesday's rally in Wednesday's pre-market session. While much attention is being focused on the Tesla pickup which will be announced, a Credit Suisse analyst pointed out units for the pickup will only be a fraction of Model 3 and Y sales by 2025. Said expects FY20 sales between $16.99 billion and $17 billion vs the analyst consensus estimate of $16.86 billion.
- Yahoo Finance Video
Amazon partners with Chinese e-commerce startup Pinduduo
Amazon is teaming up with Chinese competition - Pinduoduo - to increase sales in China. Until the end of December, Pinduoduo will sell Amazon deals on electronics, luxury brands, and more. Yahoo Finance’s Dan Roberts, Brian Cheung, and Julia La Roche discuss on YFi AM.
