On March 21, 24,$PDD Holdings Inc(PDD)$
Looking back on the whole of 2023, the overall revenue was 247.6 billion, the net profit was 60 billion, and the annual net profit margin exceeded 24%.
Although the stock price trend is a little strange after the release of the financial report, in the case of$JD.com(JD)$
The advertising revenue mainly contributed by the domestic main station business reached 48.67 billion, an increase of 57% year-on-year, which far exceeded market expectations.
This part of the revenue is mainly a series of paid services for merchants such as the promotion of the whole site, which helps high-quality products to start quickly under the premise of low prices.
In fact, I have always felt that the internal logic of Pinduoduo's paid advertising is very similar to that of$Alphabet(GOOG)$
After all, Huang Zheng has worked for Google for three years and is the first company he has experienced in his life. This impact is very subtle.
I have also compared the four companies of Baidu, Google, Taobao and Pinduoduo before.
I'm wondering why I hate Baidu's advertisements, but I don't dislike Google's advertisements very much?
To a large extent, many of$Baidu(BIDU)$
However, Google matches accurate advertisements based on the premise of recommending the best results.
In the book Foundation Changqing, advocated by Duan Yongping, it is believed that great companies all have "pursuits above profits". There is no doubt that Google has done this, but Baidu is just a mediocre profit-seeking company.
In Huang Zheng's own article, he also mentioned the same point:
I think Google's "Do No Evil" is deep into Google's gene, not casual. Google really puts mission and values before profit, such as the excellent company described in Jiye Changqing. Google's profit is a by-product of doing the right thing.
Why do I compare Baidu and Google?
It's because I think the difference between Baidu and Google. In fact, if you look carefully at Taobao and Pinduoduo, you can see the same result.
In comparison, Taobao Tmall's past business model is very similar to Baidu's bidding auction. Whoever brings more money to the platform will promote his goods. The whole company operates around GMV.
In this way, it is no wonder that Taobao should resolutely block Baidu in the early days and regard Baidu as the core threat.
Pinduoduo's low-cost recommendation logic is more like Google's search based on result accuracy, providing users with what it wants, creating value, and then profiting from it.
From this perspective, it also explains why Pinduoduo cares so much about the repurchase rate, rather than looking at the result indicator of GMV.
The repurchase rate is to Pinduoduo, just like the number of searches to Google. The indicator that proves that Google is moving up must be the number of searches, not advertising revenue.
The main station of Pinduoduo far exceeds the market expectation of 48.67 billion advertising revenue, which proves that the company's business flywheel is still accelerating, which is the most terrible thing in the financial report.
In the future, TEMU will eventually become such a business flywheel.
Compared with Google's "money printing machine", it has a special Google product cemetery website that invests everywhere with a huge amount of money.
Pinduoduo's "monet printing machine" is also extremely focused. The ceiling of online retail is so high that it is not easy to suddenly be replaced by AI on the supply side.
In addition to the geopolitical risks that must be borne at the macro level, this is really an impeccable company at the micro level.
Above.
Please do not use it as an investment reference, especially short-term investment.
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