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Stock impact report

PDD Holdings Inc. (NASDAQ:PDD): A Bargain Buy [Yahoo! Finance]

Pinduoduo Inc. - American Depositary Shares (PDD) 
Company Research Source: Yahoo! Finance
The company's shares were trading at $128.00 when this thesis was published, vs. the closing price of $92.35 on Apr 16. PDD is a multinational commerce group that operates Pinduoduo, an e-commerce platform that offers products in various categories; and Temu, an online marketplace. The business model of PDD is unique, enabling it to improve its buyer annual frequency from 17.5x in FY17 to 115.1x in FY23. This implies that a buyer makes a purchase after every three days. The frequency for BABA and JD falls far behind at 52x and 14.1x, respectively. The Chinese e-commerce space has an active user of 1 billion users and a higher buying frequency is the only way to achieve growth in Gross Merchandise Value (GMV). The fact that PDD has a diversified product mix comprising household goods, apparel and agricultural produce also enables it to cross-sell and achieve a higher GMV. PDD also has access to good quality data of purchasing groups that allows it to maintain an adequate supply o Show less Read more
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