Pinduoduo's (NASDAQ: PDD) stock rallied 15% on May 27 after the Chinese e-commerce company posted its first-quarter earnings report. Its revenue rose 7% year over year to 23.79 billion yuan ($3.75 billion), which beat analysts' estimates by $670 million.
It generated an adjusted net profit of 4.20 billion yuan ($663 million), compared to a net loss of 1.89 billion yuan a year ago, which trickled down to an adjusted profit of $0.47 per American Depositary Share and surpassed analysts' expectations by $0.20. On a generally accepted accounting principles (GAAP) basis, it posted a net profit of 2.60 billion yuan ($410 million), compared to a net loss of 2.91 billion yuan a year ago.
Pinduoduo's growth rates allayed some concerns about the recent regulatory, macroeconomic, and COVID-related headwinds in China. But is this former high-growth darling -- which lost more than 60% of its market value over the past 12 months -- still worth buying as a turnaround play?
Source Fool.com