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Pinduoduo stock surges after reporting strong revenue growth

Yahoo Finance Live anchors discuss second-quarter earnings for Pinduoduo.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: [CHUCKLES] We also got to take a look at shares of Pin-- Pinduoduo.

BRIAN SOZZI: Yup.

BRAD SMITH: Yeah.

BRIAN SOZZI: Yeah, they're in focus, too, after reporting earnings Monday, beating on the top and bottom line. The Chinese e-commerce company saw revenue growth of 36% year-over-year, citing a recovery and consumer sentiment. This is a Jared Blikre favorite, always giving this stock a mention on the Yahoo Finance Interactive-- or the YFi Interactive.

Good quarter from the company. Triple-digit operating income growth, as the key markets in China recover. But look, we've seen China GDP estimates come way down over the past few weeks. The Street is marking these estimates down. Makes me question how much growth this company has left this year. Can they come back here three months from now and put up another quarter like this because the market is betting on that happening, at least here this morning?

BRAD SMITH: Yeah, recovery and consumer sentiment is what they were citing here, and also the growth that they had seen in net income. That came in at about $1.33 billion. And there you're taking a look at some of the actuals versus the estimates. And for good reason, you're seeing the shares move higher. And then price in about 15% of a move higher here on the day.

But the larger question is how much some of the revenue from the online marketing services, at a time where you're having companies across the world pull back on their marketing spend and trying to brace wherever they can for a recession, whether it be deep, long, or protracted, or even short in stature, where that continues to impact some of those different lines of revenue. And marketing is one of those, especially as the marketing services that they had seen, the revenue from that jumped about 39% in this most recent quarter.

BRIAN SOZZI: Fun name, though. Very catchy. Fun name, yeah.

BRAD SMITH: Do want to correct myself from earlier, it was [? Stephen ?] [? Demers ?] who was the--

BRIAN SOZZI: Also a bad CEO.

BRAD SMITH: Well, there you go.

BRIAN SOZZI: Right there, Bob Martin.