Pinduoduo-owner PDD beats quarterly revenue estimates, shares rise
PDD Holdings Inc (PDD.O) beat analysts’ estimates for first-quarter revenue on Friday as more price conscious customers turned to its discount e-commerce platforms including Pinduoduo.
The company’s U.S.-listed shares rose 7% in trading before the bell.
Chinese consumer spending has gained some momentum since the country abandoned strict zero-COVID policies late last year. Retail sales in the country rose 5.8% in the January-March period, with online retail sales up 8.6%, according to government data.
Platforms such as Pinduoduo and China’s TikTok-equivalent Douyin gained traction during the pandemic, when livestream selling of goods by merchants became quite popular.
Expansion of PDD’s international platform Temu, which sells made-in-China products at affordable prices, also boosted the company’s revenue growth.
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