logo-loader

Pinduoduo stock drops as Chinese e-commerce group misses revenue expectations

Published: 08:03 21 Aug 2020 EDT

e-com

Chinese e-commerce operator Pinduoduo Inc (NASDAQ:PDD) is set to slump around 9% in Friday’s early deals after shocking investors with topsy-turvy second quarter results.

Pinduoduo unexpectedly made a per-share quarterly profit but revenue fell short of expectations, coming in at RMB12.19bn (US$1.72bn) versus Wall Street expectations of RMB12.77bn.

The e-commerce platform boasted 568.8mln monthly active buyers, a 55% improvement from 355mln in the comparative quarter of 2019.

Meanwhile, average spend per active buyer increased by 27% to RMB1,467 (US$211.98).

Chief executive Lei Chen, in a statement, said: “We witnessed great resilience amongst our merchant community.

“Our users’ increasing recognition of Pinduoduo’s value proposition contributed to the user base growth and user activities on our platform.”

Tony Ma, Pinduoduo VP of finance, meanwhile added: “We observed healthy recovery in advertising demand from our merchants during the quarter.

“In addition to merchants deferring their marketing spend to the June quarter, we would attribute such increase to better returns as a result of higher user engagement on our platform and more compelling advertising product offerings.”

Pinduoduo stock fell US$8.93 or 8.76% in pre-market, to be priced at US$88.30 per share.

BenevolentAI advances novel ulcerative colitis treatment through Phase 1a trial

BenevolentAI (OTC:BAIVF) chief scientific officer Dr Anne Phelan joins Proactive's Stephen Gunnion with positive safety data from the Phase 1a, first-in-human, clinical study of BEN-8744 in healthy volunteers. Phelan explained that BEN-8744 is a potent, selective PD10 inhibitor, uniquely...

2 hours, 37 minutes ago