18 C
Friday, September 29, 2023

Pinduoduo Reports Strong Q2 Results & RMB10 Billion Agri-Initiative; Shares Surge 22%

Must read

Shares of Pinduoduo Inc. (PDD), the largest agriculture-focused technology platform in China, jumped 22% on Tuesday after the company delivered blowout second-quarter results. The company also launched an agriculture initiative worth RMB10 billion in China.

The quarterly beat was driven by robust performances across all segments, as an increasing number of consumers shopped through the platform.

Markedly, the company reported adjusted earnings of RMB2.85 ($0.44) per ADS, a huge jump from the adjusted loss of RMB0.06 per ADS reported in the prior-year period.

Furthermore, revenues surged 89% year-over-year to RMB23.05 billion ($3.6 billion) compared to RMB12.19 billion in the prior-year quarter. (See Pinduoduo stock charts on TipRanks)

The increase in revenues reflected a surge in average monthly active users, which increased 30% to 738.5 million.

Pinduoduo  Unveils “10 Billion Agriculture Initiative”

Together with the earnings announcement, Pinduoduo revealed its plans to launch a RMB10 billion or USD1.6 billion agriculture initiative to support China’s agricultural industry, with a particular focus on addressing rural areas.

Important to note, management plans to allocate all the profits from the second quarter as well as expected profits in the upcoming quarters towards the initiative until the total RMB10 billion commitment is accomplished.

Pinduoduo CEO Lei Chen commented, “Agriculture has long been at the core of Pinduoduo’s corporate mission and strategy and the ’10 Billion Agriculture Initiative’ we announced today is a way for us to deepen our support for agricultural modernization and rural vitalization.”

Morgan Stanley analyst Eddy Wang recently decreased the price target on Pinduoduo from $150 to $130 (31.2% upside potential) while maintaining a Buy rating.

Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 2 Holds. The average Pinduoduo price target of $150.27 implies 51.6% upside potential from current levels.

Related News:
Madison Square Garden Reports Better-Than-Expected Q4 Revenue; Shares Leap 16%
BlueLinx Announces $25M Buyback Program & Termination of Equity Offering; Shares Surge 6.6%
Microsoft Teams Up With Accenture and Duke Energy to Develop Unique Platform

The post Pinduoduo Reports Strong Q2 Results & RMB10 Billion Agri-Initiative; Shares Surge 22% appeared first on TipRanks Financial Blog.

Source link

More articles

Latest article