Pinduoduo’s paltry earningsGrocery tech star Pinduoduo’s poor earnings pile onto a slew of disappointing results from U.S.-listed Chinese stocks, sending prices plummeting.
- The stock was down over 16% on Friday after the e-commerce platform posted a brutal revenue miss.
- Its $3.37bn in revenue was up 51% y-o-y but missed expectations of $4.04bn, with EPS coming in at $0.34.
- Covid has hit consumer spending as fresh lockdowns around the nation prompt economic concern.
- Annual shopper count was up by only 19%, marking its slowest level of growth as a public company. Although it does have 900m users already.
- Prices are down 61% for the year after a Chinese crackdown on big tech companies in the name of consumer protection.
- It’s been a sad earnings season for U.S.-listed Chinese stocks. Alibaba (BABA) is down nearly 18% since its regulatory-induced earnings miss, and Baidu (BIDU) lost 11% last week on the back of slowing growth.
Illustration by TradingView