3 Reasons Why Pinduoduo Could Be Your Perfect Growth Stock
Pinduoduo (NASDAQ: PDD) is one of the three major e-commerce companies in China. Listed in July 2018, Pinduoduo has since delivered a respectable 84% return to its IPO investors, mainly driven by 123% revenue growth since its market debut. But despite its strong recent performance, there are three good reasons to think that Pinduoduo is well-positioned to sustain its high growth rates into the future.
Founded in 2015, Pinduoduo rose to its current prominence at an unprecedented pace. In less than five years, the company grew revenue from $0 to $3.5 billion over the trailing 12 months thanks to its meteoric rise in gross merchandise value (GMV), which reached $117.5 billion for the 12 months ended Sept. 30, 2019.
That's phenomenal growth, especially when you consider that Alibaba (NYSE: BABA), the biggest e-commerce company in China, took nine years to surpass $100 billion in GMV. Another major competitor, JD.com (NASDAQ: JD), needed 13 years to reach that mark. Pinduoduo took only four years.
Source Fool.com
