3 Reasons Pinduoduo Stock Fell by More Than 30% in 2021

Chinese e-commerce company Pinduoduo (NASDAQ: PDD) was one of 2020's best-performing stocks, rallying by more than 300% during the year. The surge in online shopping driven by pandemic lockdown orders and social distancing efforts benefited major e-commerce players like Sea Limited and Amazon. Pinduoduo, too, rose to the occasion, gaining major ground on rivals Alibaba (NYSE: BABA) and JD.com. Its revenue grew by 97% year over year in 2020.

But Pinduoduo's share-price climb seems to have run out of steam, despite continued strength for some other tech bellwethers. Facebook share prices even hit an all-time high last week, underscoring that there's sustained demand among investors for quality tech names. Pinduoduo stock, on the other hand, is now trading down about 37% from its peak in mid-February.

Here's why the company and its stock may have fallen out of favor.

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Source Fool.com