|Bid||28.91 x 1300|
|Ask||29.05 x 900|
|Day's Range||29.38 - 30.65|
|52 Week Range||16.53 - 31.99|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 26, 2019 - Sep 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||31.34|
China's rising star in e-commerce is not in a hurry to expand beyond its home market, says its head of strategy, David Liu, as the company continues to find lots to do with nearly half a billion users in China.
Alibaba stock dropped 1.90% on August 22 after a 1.11% fall on August 21. The decline came after its competitor Pinduoduo reported strong earnings results.
(Bloomberg) -- For years, Pinduoduo Inc. had little clue about the whereabouts of millions of parcels delivered every day to its shoppers’ doorsteps. Now it’s finally getting ready to take back control of that valuable data -- from Alibaba.China’s No. 3 e-commerce platform has since its inception relied on much larger Alibaba Group Holding Ltd. and its Cainiao unit to track and handle some $70 billion of annual shipments, meaning its rival enjoyed an unparalleled overview of PDD’s nationwide activity and customers’ shopping habits. That’s finally changing thanks to PDD’s new in-house shipping information technology, said David Liu, Pinduoduo’s vice president of strategy.Beyond freeing itself from a dependence on its rival, PDD’s approach presents a threat to Alibaba’s dominance of Chinese e-commerce shipping data, mined by companies in industries from retail to healthcare for insights into consumer behavior. It’s a lead built starting back in 2014, when Cainiao pioneered a so-called e-waybill system that tracks goods via shipping labels, and that shares real-time locations. That innovation became the de facto standard, adopted by couriers from SF Express to ZTO and helping Alibaba’s own shopping sites operate more efficiently.“It’s key for us to grasp this data,” PDD’s Liu said in an interview after the company unveiled stronger-than-expected quarterly results. “All the third-party logistics companies have welcomed us as another platform that brings some checks and balances in the industry.”Read more: Ex-Google Engineer Builds $1.5 Billion Startup in 21 MonthsPinduoduo has grown to such a scale it wants to wrest back its own logistics data. The shopping app -- known for cheap deals and gamified experiences -- is luring new users from China’s rising middle-class. In June, customers from Tier 1 and 2 cities contributed almost half of Pinduoduo’s gross merchandise volume, or value of goods sold, up from 37% in January. On Wednesday, it reported a 169% leap in revenue for the June quarter, triggering a 15% share surge.PDD’s in-house system now hooks up and shares information, such as unique identifiers for individual products, between merchants, couriers and shoppers. In March, the Shanghai-based online retailer launched its own variant of Cainiao’s system and as of now, almost all orders generated on PDD’s platform -- an average of 40 million per day -- have migrated to the new system, Liu said.“For any e-commerce platform, logistics is a very important part of creating a good shopping experience,” said Shawn Yang, a Shenzhen-based analyst with Blue Lotus Capital. “Pinduoduo wants to provide cheap delivery and better service, otherwise Alibaba will have a huge edge over it.”Pinduoduo isn’t charging fees for its e-waybills for now. In the long run, Liu said, the company could monetize by helping merchants use Pinduoduo’s data to lower delivery costs. While Pinduoduo won’t build its own warehouses or fleet, it will invest in technologies like AI-powered routing to create an “asset-light” logistics network, PDD founder and chief executive Colin Huang told analysts on a conference call after announcing earnings.To contact the reporter on this story: Zheping Huang in Hong Kong at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It’s no secret that the Chinese eCommerce segment has developed into a burgeoning market. According to a recent Barclays report from analyst Gregory Zhao, the country’s large population and increasing disposable incomes suggest that its current penetration rate of 24% only stands to rise. Amid this backdrop, a new era of eCommerce is being ushered in. Zhao deems the resulting market structure a “three-kingdom phase”. “Competition has become less about user traffic, with the focus now turning to the evolution of ecosystems, with value added services like payment, logistics, media content, marketing solutions, and offline retail integration. Based on this, Alibaba is still our preferred name in the space,” he stated. In the report, the 1.5-star analyst provides his take on Alibaba (BABA) and 2 other Chinese eCommerce Stocks.Let’s take a closer look at what the analyst had to say about each. JD.com Inc. (JD)JD has managed to pull off quite the turnaround. The company has demonstrated significant margin improvement in its last few quarters thanks to an investment in expanding its geographic operations and optimizing warehouse logistics with robotics. While this investment had a negative impact on margins in the short-term, JD is now on the right track with margins expanding by 60 bps in Q2 vs 20 bps in the previous quarter. Revenue growth has also stabilized, with it gaining 23% from the prior-year quarter. Not to mention JD is starting to embrace the team-buy model and prioritize its direct access to users on WeChat to acquire long-tail users, in order to combat the slower user growth it saw in the second half of 2018. Zhao notes that this should benefit ads and commission revenue growth on its marketplace. That being said, the eCommerce company still has a long way to go. “While new initiatives such as logistics and tech services provide another avenue for growth, we think the above positives have been fairly reflected in the consensus and stock price during the re-rating post 2Q earnings. In addition, while JD focuses on the retail market, it may miss some significant opportunities such as in Cloud and payment,” Zhao explained. As a result, the analyst initiated coverage with a Hold and set a $36 price target on August 19. His price target suggests shares could gain 15% over the next twelve months, with the stock already up 4% in the last five days. The rest of the Street takes a slightly more optimistic stance on JD. It has a ‘Moderate Buy’ analyst consensus and a $37 average price target, implying 21% upside potential. Pinduoduo Inc. (PDD) This Chinese eCommerce stock has made substantial headway in its efforts to gain market share with its unique team-buy social-eCommerce marketplace model. Its platform allows users to share product information on social media networks like WeChat and QQ as well as form shopping teams to get a lower prices on their purchases.“We prefer PDD to JD, in addition to PDD's better use of social network resources, we view a larger monetization potential during its move toward high-end markets,” Zhao noted.This strategy appears to be paying off for PDD. According to its August 21 Q2 earnings release, monthly active users rose by 88% from the year-ago quarter to reach 366 million. Management attributed this growth to company’s user-first strategy as well as its shopping festival campaign. The company also highlighted the fact that customers have been impressed with PDD’s move up to large-ticket items, its effort to improve the brand image and stock keeping unit expansion into branded products.However, it should be noted that PDD reported operating loss more than doubled to RMB1.5 billion ($212.4 million) compared to RMB6.6 million ($934,500) in the prior-year quarter. Even with this loss, the Barclays analyst believes PDD’s strategy will drive sustainable long-term growth. “While the Street is concerned about PDD's profitability in intensive marketing, we regard this investment as necessary at the current stage. In the long run, we expect upside in its ARPU and take rate during its expansion into the high-end market, along with an improving margin profile,” Zhao explained. Based on all of the above factors, he initiated coverage with a Buy and set a $32 price target on August 19. The analyst believes share prices could surge 6% over the next twelve months. This is on top of the 28% growth the company has seen over the last five days.All in all, the consensus among analysts is that PDD is a ‘Moderate Buy’. Its $27 price target suggests 11% downside. Alibaba Group (BABA) It’s easy to see why the last stock on our list is widely considered to be the China equivalent of eBay (EBAY) and Amazon (AMZN). With 55% market share, Alibaba has cemented itself as the top player in the space.BABA’s “new retail” strategy centers around combining the best of both online and offline commerce to provide a shopping experience for the customer. The company creates this experience through three main eCommerce sites: Alibaba.com, its international trade site, Taobao, a Chinese online shopping website and Tmall, a Chinese-language website for business-to-consumer online retail. So far, investors like what they see. On August 15, BABA reported revenue of RMB114.9 billion ($16.7 billion) or a 42% year-over-year gain. Adding to the good news, user acquisition programs which deepened its penetration into less developed areas drove a 20 million increase in annual active users. By no means is the company stopping there. BABA’s cloud products alone generated RMB7.8 billion ($1.1 billion) in quarterly revenue, up 66% year-over-year thanks to the launch of over 300 new products and features in Q2. The company is also expanding its product offerings to include digital payments, online entertainment and food delivery.Based on all of these positive developments, Zhao points to BABA as most poised to outperform. “Alibaba is still our preferred name in the space, given its top market position, attractive valuation and monetization perspective,” he explained. As a result, he reiterated his Buy rating and $225 price target. With shares already climbing 8% in the last five days, the analyst sees even more upside as his price target suggests 28% upside. Wall Street mirrors Zhao’s sentiment, with the consensus among analysts being that BABA is a ‘Strong Buy’. Its $224 average price target suggests 28% upside potential.
Pinduoduo stock is the IBD Stock Of The Day. The unique Chinese e-commerce company, self-described as "Costco meets Disneyland," smashed second-quarter earnings estimates.
Pinduoduo results for the second quarter came in well above Wall Street's projected estimates, sending shares of the China e-commerce company higher by double digits in trading Wednesday.
Pinduoduo Inc. shares surged 16% to $30.11 in Wednesday trading after the Chinese e-commerce company beat revenue expectations and posted a slimmer loss than analysts were anticipating for the second quarter. The company lost 3 cents a share on revenue of $1.03 billion, whereas analysts had been modeling a 22-cent per share loss and $867.4 million in revenue. Pinduoduo's active-buyer base grew 41% from a year earlier, while annual spending per active buyer rose 92% over the twelve-month period that ended in June. Jefferies analyst Thomas Chong wrote that the growth trajectory likely came as a "surprise to the Street" and reflected strong marketing efforts. Pinduoduo shares notched their largest single-day percentage gain in nine months. Pinduoduo's results follow better-than-expected quarterly numbers from Chinese e-commerce peers Alibaba Group Holding Ltd. and JD.com Inc. Shares have jumped 40% over the past three months, giving Pinduoduo a market capitalization of $33.5 billion, as the S&P 500 has inched up 2%.
NEW YORK, NY / ACCESSWIRE / August 21, 2019, 2018 / Pinduoduo, Inc. Sponsored ADR Class A (NASDAQ: PDD ) will be discussing their earnings results in their 2019 Second Quarter Earnings to be held on August ...
SHANGHAI, China, Aug. 21, 2019 -- Pinduoduo Inc. ("Pinduoduo" or the "Company") (NASDAQ: PDD), an innovative and fast growing “new e-commerce” platform and one of the leading.
(Bloomberg) -- Forget the world’s chaos for a moment. Alibaba Group Holding Ltd. is doing just fine.Despite a trade war, the slowing domestic economy and brutally aggressive competition, China’s largest technology company reported revenue and profit numbers that handily beat analyst estimates. Revenue rose a blazing 42%, while net income more than doubled. Shares popped 3% in U.S. trading.Insulated because of its predominantly domestic business, Alibaba is benefiting from a demographic shift to internet shopping. Chinese online sales accelerated in the June quarter, helped by sales promotions that unfolded across the country’s largest e-commerce platforms. Alibaba’s report dropped just as the risks of a recession spike, U.S.-China trade tensions ratchet up yet again and archrival Tencent Holdings Ltd. warns of a tough economic outlook.“It’s surprising how resilient Alibaba is,” said Michael Norris, a Shanghai-based research and strategy analyst at consultancy AgencyChina. “There’s a big disconnect between Wall Street, which has really given a beating to Alibaba’s shares, and people on the ground.”Revenue rose 42% to 114.9 billion yuan ($16.3 billion) in the three months ended June, while net income also came in ahead of expectations at 24.4 billion yuan. That was helped by more than 4.3 billion yuan of pretax profit from Ant Financial, the payments-to-lending affiliate controlled by billionaire Jack Ma.“Despite the macro environment not being as good as last year, Alibaba has launched a lot of new initiatives and the personalized product feed is helping maintain its growth rate,” said Steven Zhu, an analyst with Pacific Epoch. “Its live-streaming services and collaboration with international brands are helping.”The economic slowdown is eroding parts of the company’s sprawling empire of e-commerce, retail stores, delivery services and more. Revenue in its digital media and entertainment segment inched up just 6%, despite streaming service Youku enlarging its average daily subscribers by 40%. Growth in its cloud computing division, which commands half the country’s market share, slowed to a still-respectable 66%.Small and mid-sized enterprises may be leery of spending on ads -- Alibaba’s biggest source of income -- given the current environment. That prompted Chief Financial Officer Maggie Wu to tell analysts Alibaba is in no rush to monetize its new shopping recommendation feeds.Longer term, investors have raised flags about the impact on margins of Alibaba’s enormous spending on so-called new retail -- its effort to use technology to overhaul physical retailers -- and deepen its footprint in lower-tier cities and rural areas. Alibaba said it will continue to invest in those initiatives, as well as on-demand services like food delivery unit Ele.me, which is fighting a fierce, money-losing battle with giant Meituan.Alibaba is approaching a critical juncture just as Chief Executive Officer Daniel Zhang prepares to replace billionaire co-founder Ma as chairman in September. A U.S. campaign of tariffs and other curbs is heightening uncertainty around the world’s second-largest economy, while the emergence of rivals at home such as Pinduoduo Inc. tests its longstanding dominance of Chinese online retail.The e-commerce titan may be on the look-out for assets to bolster its lead. Alibaba is in talks to pay $2 billion for NetEase Inc.’s Kaola, which specializes in selling foreign goods to Chinese consumers, local media outlet Caixin reported.The company is also hatching plans to raise more capital. Alibaba’s quarterly performance bolsters its ambition of pulling off what could be Hong Kong’s biggest share sale since 2010. The company is said to have already filed confidentially for a stock listing, but it’s unclear when it might go ahead with the float given the widespread protests that have gripped Hong Kong over the past 11 weeks. Executives made no mention of the issue during their conference call.Overall, adjusted earnings per share came to 12.55 yuan versus the 10.3 yuan projected. Net cash slipped 4% in the quarter, depressed by a $250 million cash settlement reached last quarter on a U.S. federal class action lawsuit.The “key standout for us is that Alibaba’s China commerce business grew 40%, close to twice the rate of the China online retail industry,” said Neil Campling at Mirabaud Securities. “The scale benefits are paying off and Alibaba is enjoying both active consumer growth momentum and higher average spend.”\--With assistance from Zheping Huang and Sheryl Tian Tong Lee.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FingerMotion, Inc. (OTC QB: FNGR), a US FinTech company with mobile payment and recharge platform operations in China, today provided a supplemental corporate update in a letter from its CEO Martin Shen to its shareholders. The China Unicom (CHU) deal was an extremely positive step for our company. The partnership agreement between FingerMotion and China Unicom allows FingerMotion to have direct access to users for their top-up fulfillment, and also allows FingerMotion to sell any and all mobile phone products available from China Unicom through the China Unicom brand portals. China Unicom will remain responsible for all inventory and fulfilment costs of physical products, meaning FingerMotion will have very limited capital costs in handing all revenues coming through the portals.
SHANGHAI, China, Aug. 06, 2019 -- Pinduoduo Inc. ("Pinduoduo") (NASDAQ: PDD), an innovative and fast growing “new e-commerce” platform and one of the leading Chinese e-commerce.
Retailers are making prudent investments to strengthen digital ecosystem and bolster shipping and delivery capabilities. While these drive sales, they entail high costs. Margins remain one of the key areas to watch.
FingerMotion, Inc. (OTC QB: FNGR), a US fintech company with mobile payment and recharge platform operations in China, today provided a corporate update in a letter from its CEO Martin Shen to its shareholders.
China’s top direct retailer faces tough challenges -- but smart investments, big backers, and a growing market should lift its stock higher over the next decade.
The Board of Directors of Pinduoduo Inc. (“Pinduoduo”, or the “Company”) (PDD) announced changes today to comply with NASDAQ requirements for a majority independent board. “Pinduoduo is committed to becoming the gold standard in corporate governance as a publicly listed company. Effective immediately on the first anniversary of Pinduoduo’s listing, Mr. Zhen Zhang will cease to be a Director as the Company complies with NASDAQ requirements for a majority independent board within one year after its initial public offering.
On CNBC's "Fast Money Halftime Report," Jon Najarian spoke about unusually high options activity in Pinduoduo Inc (NASDAQ: PDD). Pete Najarian said options traders were also buying the at the money calls in Sirius XM Holdings Inc (NASDAQ: SIRI). Pete Najarian loves the risk-reward ahead of the earnings report.
Chinese consumers aren’t cutting back on online spending, and that could indicate a strong second half of the year for e-commerce companies, KeyBanc Capital Markets analyst Hans Chung says.