Pinduoduo (PDD) Stock Price: Why It Increased Over 7% Today

By Amit Chowdhry ● May 31, 2022
  • The stock price of Pinduoduo Inc (NASDAQ: PDD) increased by over 7% pre-market today. This is why.

The stock price of Pinduoduo Inc (NASDAQ: PDD) increased by over 7% pre-market today. Investors are responding positively to a bullish research report.

BofA Securities analyst Joyce Ju increased the price target on Pinduoduo to $77 from $75 while maintaining a “Buy” rating on the shares. Pinduoduo adjusted the rating in response to the company’s first-quarter results. These were the highlights from the quarter:

— Total revenues in the quarter were RMB23,793.7 million (US$13,753.4 million), an increase of 7% from RMB22,167.1 million in the same quarter of 2021.

— Average monthly active users in the quarter was 751.3 million, an increase of 4% from 724.6 million in the same quarter of 2021.

— Active buyers in the twelve-month period ended March 31, 2022 was 881.9 million, an increase of 7% from 823.8 million in the twelve-month period ended March 31, 2021.

— Operating profit in the quarter was RMB2,154.4 million (US$339.8 million), compared with operating loss of RMB4,147.0 million in the same quarter of 2021. Non-GAAP operating profit in the quarter was RMB3,677.2 million (US$580.1 million), compared with non-GAAP operating loss of RMB3,174.1 million in the same quarter of 2021.

— Net income attributable to ordinary shareholders in the quarter was RMB2,599.5 million (US$410.1 million), compared with net loss of RMB2,905.4 million in the same quarter of 2021. Non-GAAP net income attributable to ordinary shareholders in the quarter was RMB4,200.4 million (US$662.6 million), compared with non-GAAP net loss of RMB1,890.3 million in the same quarter of 2021.

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