To The Moon

$Pinduoduo Inc.(PDD)$ just released its third quarter results, the stock soared 16% in pre-market trading, and the market capitalization reached $181.4 billion, which is four times that of $JD.com(JD)$ $JD-SW(09618)$ and approaching $Alibaba(BABA)$ $Alibaba(09988)$'s $197.2 billion. The throne of China's largest e-commerce is about to change!

PDD is the last of the three e-commerce giants to disclose third quarter reports. Though belated, the results have exploded, crushing Wall Street expectations in terms of revenue and profits:

Specifically, PDD's revenue was 68.84 billion yuan in the third quarter, an increase of 94% over the same period last year, far exceeding the analyst consensus of 54.87 billion yuan:

By business, the revenue of online marketing services and others in the third quarter was 39.688 billion yuan, up 39.6% year-on-year, slightly higher than the 38.85 billion yuan expected by analysts. transaction services was 29.15 billion yuan, up 315% from the same period last year, far exceeding the 16.62 billion yuan expected by analysts:

The company did not explain the reasons for the surge in performance in the financial report, but it is easy to understand that overall consumption showed a downgrade trend in the domestic market. PDD is known for low prices and fully benefit.

In overseas markets, Temu's performance is really amazing. According to Bloomberg data, Temu's sales in the United States were more than twice that of Shein in September:

You know, Temu has only been on the U.S. market for 14 months.

Some analysts said that Temu's revenue may have exceeded $1 billion from the United States last quarter!

This is really amazing! Compared with Alibaba, JD.com, PDD is expected to China's largest e-commerce, regardless of momentum or scale.

Take the revenue growth rate, the revenue growth rate of PDD was as high as 94% in the third quarter, while that of Alibaba was only 8.5%, and JD.com was even less than 1.7%. Among the Three Giants, only PDD maintained an accelerated growth trend in the third quarter:

In terms of profit margin, asset-light PDD completely beat Alibaba and JD.com.

As net profit, PDD was 15.5 billion yuan in the third quarter, crushing JD.com 's 8.2 billion yuan, and accelerating to catch up with Alibaba's 26.7 billion yuan:

In terms of sales expenses, PDD invested heavily, with a growth rate of 54.8% in the third quarter, JD.com shrank its investment, and Alibaba increased to 14% :

In overseas expansion, JD.com has made no progress, and Alibaba's international business has returned to high growth, but it is inferior to PDD Temu:

According to the current situation, PDD is destined to replace Alibaba and become China's largest e-commerce!

From the valuation point of view, PDD price-earnings ratio is only 26 times, and there is still a lot of upward space.