China's e-commerce king set to lose its crown as the most valuable Chinese company listed in the U.S.
PDD's market cap stood at $192.59 billion, surpasses Alibaba's $189.65 billion in morning trading on Thursday. The moment was a stark indication of how much has changed in China's vast e-commerce sector.
PDD's revenue for the July-September quarter came in well above the Wall Street consensus, partly because analysts had underestimated Temu, PDD's cross-border e-commerce service that ships goods from China globally. PDD did not disclose revenue, marketing expenses or any other data related to Temu in its latest financial report, and management sidestepped questions about Temu at its earnings calls.
Temu, now available in more than 40 countries, is the global version of the Pinduoduo platform for China. Like its Chinese counterpart, it competes on ultralow prices and uses similar tactics, namely group buying, to gain users. Its slogan is "Team Up, Price Down."