Stock Groups

China’s Pinduoduo misses quarterly revenue estimates -Breaking


© 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)

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts, buy/sell signal, and quotes. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.