Source: Wind
According to a report from Bloomberg in Hong Kong,$PDD Holdings (PDD.US)$Following yesterday's 2.39% increase, the US stock market continued to rise on September 12th, with the stock price rising nearly 3% to $97.96 at the time of writing. In terms of news, data shows that pdd holdings' overseas e-commerce platform Temu has surpassed$eBay (EBAY.US)$to become the world's second largest e-commerce website.
Its subsidiary Temu surpasses eBay.
On the news side,$Similarweb (SMWB.US)$Data shows that PDD's overseas e-commerce platform Temu has surpassed eBay to become the second largest e-commerce website in the world, with a monthly visit of nearly 0.7 billion times on Temu.com.
It is reported that Temu was launched in September 2022 and became the most downloaded shopping app in the United States just a few weeks later. It is worth mentioning that only a quarter of the visits to Temu.com come from the United States, and the company's business covers 79 countries and regions.$Amazon (AMZN.US)$The number one e-commerce website has a monthly visit of 2.7 billion times, almost all of which come from U.S. users.
Anxin International pointed out that looking at Temu's overseas e-commerce business, Temu's business has continued to expand this year, and it has already entered more than 70 countries and regions around the world. In recent years, with the saturation of the domestic e-commerce market and the trend of downgrading overseas consumption, domestic e-commerce platforms have started the trend of going global. With its low-priced commodities, perfect logistics system, and large-scale promotional activities, Temu has become a strong competitor in the North American, European, and Japanese and Korean e-commerce markets. Temu's semi-hosted model enriches its store management methods and optimizes its profit structure. In the future, with optimization of the supply chain, improvement of user stickiness, and reduction of advertising costs, Temu is expected to create a huge profit space.
After the earnings report, the stock price fell sharply but received support from Goldman Sachs.
Earlier, on August 26, PDD released its financial report for the second quarter of 2024 ending on June 30. The report shows that PDD's revenue in the second quarter was 97.1 billion yuan, a year-on-year growth of 86%, lower than the market expectations of 99.9 billion yuan. The year-on-year growth rate of revenue was 86%, a decrease of 45% compared to the first quarter. Among them, revenue from online marketing services and other services was 49.12 billion yuan, a year-on-year growth of 29%; revenue from trading services was 47.94 billion yuan, a year-on-year growth of 234%.
The PDD stock price fell nearly 30% overnight, hitting the largest drop since the IPO, and continued to decline for three consecutive trading days, falling to a low of $88 per share.
Despite the deep adjustment in stock price, Goldman Sachs is still bullish on PDD. The institution has given a buy rating to PDD in its report, with a 12-month target price of $184, and Goldman Sachs stated that the current market cap does not include the valuation of Temu. It believes that PDD's faster growth in GMV and transaction service revenue exceeding expectations imply the continued growth momentum of Temu. PDD remains one of the fastest-growing companies in China's internet sector in the second quarter, and its strategies and investments will drive future growth.
In addition, Goldman Sachs pointed out other highlights of PDD's performance, including Temu's strong GMV reaching $11 billion and a 234% year-on-year growth in transaction commission revenue. The profit margin has been improving quarter by quarter due to reduced subsidy levels in mature markets like the US and strict control over procurement prices. The adjusted EBIT (earnings before interest and taxes) also exceeded expectations, which may be attributed to the improvement in domestic profitability and Temu's unit profitability.
Editor/rice