#6 - Pinduoduo (NASDAQ:PDD)
Pinduoduo (NASDAQ:PDD) has an odd business model, but it might just be odd enough to be an absolute genius idea in these socially distant times. Let’s just say it makes e-commerce a collaborative experience.
The company allows online shoppers to invite a group of friends or followers to join them. In turn, the group gets bulk-buying discounts on certain items. It’s a combination of Instagram meets Groupon I suppose, but it’s obviously working for Pinduoduo. The company has 628.1 million active buyers and posted an increase of 76% in its transaction revenue in its most recent quarter.
The success of PDD gets even better when you consider that it took Alibaba 15 years to reach 500 million active buyers. However, some of that could be explained by Alibaba creating a market that Pinduoduo is happily participating in.
PDD stock is up over 100% in 2020 with virtually all of that growth coming after April 1. This suggests that the company is continuing to post strong numbers even after the Chinese lockdown measures ended.
About PDD
PDD Holdings Inc, a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace.
Read More - Current Price
- $100.70
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $173.40 (72.2% Upside)
