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China’s Pinduoduo misses quarterly revenue estimates -Breaking

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© Reuters. FILE PHOTO – This illustration was taken on July 17, 2018, and shows the Pinduoduo logo. REUTERS/Thomas White/Illustration/File Photo

(Reuters) – Chinese e-commerce platform Pinduoduo (NASDAQ:) Inc reported Monday its quarterly revenue, which was lower than Wall Street estimates. This is despite fierce competition. Alibaba (NYSE:) & JD (NASDAQ?).com are part of the fast-growing online shopping market.

Premarket trading saw a drop of 12% for U.S. listed shares in Pinduoduo.

Pinduoduo has been a relative newcomer in Chinese ecommerce. This is because they have superior infrastructure and logistical capabilities as well as being in a dominant position on the Chinese market.

In addition, the slowdown of China’s second largest economy and rapid COVID-19 epidemics in China have had a negative impact on discretionary spending.

According to IBES data, Refinitiv, total revenue reached 27.23 billion Yuan (or 4.29 billion dollars) during the fourth quarter. This is higher than estimates of 30.10 trillion yuan.

The quarter ended December 31 saw net income of 6.62 billion Yuan, compared to a loss in 2017 at 1.38 billion Yuan.

($1 = 6.3547 renminbi)

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