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Pinduoduo Inc ADR PDD Stock Quote

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Morningstar‘s Stock Analysis PDD

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Is it the right time to buy or sell?

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INVESTOR

5-Star Price

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Economic Moat

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Capital Allocation

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Pinduoduo's Morningstar Uncertainty Rating Is Very High

Chelsey Tam Senior Equity Analyst

Business Strategy and Outlook

| Chelsey Tam |

Pinduoduo is a social e-commerce platform that encourages users to enjoy lower prices by teaming up to make purchases. Easier sharing of PDD deals with social contacts through Tencent’s social network lead to lower traffic acquisition costs versus peers. The firm focused on low-tier cities and white-label merchants, followed by the CNY 10 Billion Program launched in 2019 to subsidize consumers for higher-priced products such as Moutai, Apple iPhones, and agricultural products. PDD aims to offer good value across a wide range of categories and price points. To increase average revenue per user, PDD uses subsidies to induce consumers to make purchases in categories they haven't purchased in before. PDD's active buyers in the year ended March were 882 million, likely higher than that of Alibaba, though we estimate its spending per active user was 37% of Alibaba. CEO Chen Lei expressed his goal in March 2021 to continue subsidies so as to replace Alibaba as the shopping platform of choice for the 1 billion consumers in China.

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Key Statistics PDD

Company Profile PDD

Business Description

Pinduoduo is the third-largest e-commerce platform by gross merchandise volume and the largest platform by active buyer in China. In 2021, it achieved CNY 2,441.0 billion (USD 345 billion) of gross merchandise volume, and CNY 2,810 (USD 397) of annual spending per active buyer. It had 11.5 million active merchants in 2021 and 882 million active buyers in the year ended March 2022. It is one of the top two players in next-day grocery self-collect services (similar to community group purchasing), where groups of consumers place fresh food and grocery orders online and collect at designated self-collect points the next day with the help of "group leaders" in each community.

Contact
No. 533 Loushanguan Road, 28th Floor, Changning District
Shanghai, 200051, China, People's Republic of
T +86 2152661300
Industry Internet Retail
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 9,762

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