Pinduoduo Inc ADR (PDD Stock) rally set to extend amid impressive earnings growth

NASDAQ: PDD is set to extend its gains on Friday after surging by over 20% on Thursday.
Pinduoduo Inc has beat revenue estimates and surprised with a profit.
The interactive e-commerce platform may also be benefiting from Alibaba's Singles' Day sales.

Yohay Elam FXStreet

Several of China's tech behemoths are well-known worldwide – yet those are still not giants have more potential to rise. Pinduoduo Inc is an e-commerce giant based in Shanghai, which offers a more interactive marketplace.

The firm – founded only in 2015 by Colin Huang Zheng – has a unique model, which facilitates users to create buying clubs based on family members and friends. Group purchases offer savings and also create peer pressure on others to consume on the interactive platform.

Pinduoduo reported encouraging earnings figures for the third quarter. Average monthly users jumped by 50% to 643.4 million, reflecting increase in inactivity. Despite China's emergence from the coronavirus crisis, online shopping remains robust. Revenue leaped by 89% to $2.09 billion, exceeding analysts' estimates of $1.86 billion.

CEO Lei Chen said "This quarter we continued to invest in user engagement, which resulted in the strong growth of MAUs and active buyers,"

PDD Stock Forecast

The company's reports coincided with "Singles' Day" – a shopping festivity that was invented by Alibaba, a major rival. Expenditure tends to rise on November 11 due to the event – and impacts other firms, not only the one that founded it. That may explain part of the recent increase.

NASDAQ: PDD soared by over 20% to close at $134.21 on Thursday. It is already worth more than four times the 52-week low of $30.20 and is on course to hit new highs. Friday's premarket trading is pointing to another rise of over 3% to $138.71.

Support awaits at $103.90, which was a low point ahead of the earnings report.

What you need to know about the dollar in the post-vaccine announcement world

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices

The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold sticks to gains above $5,350 amid sustained safe-haven demand; firmer USD caps gains

Gold sticks to its positive bias for the third straight day and trades above the $5,350 level heading into the European session on Tuesday. Concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.

Stellar risks deeper losses as derivatives metrics turn negative

Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.

The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.