Pinduoduo Catches Up With in Market Cap

Shares in Pinduoduo climbed 45 percent in August after a successful second quarter. This week, its market valuation has come close to that of China's second-largest e-commerce company.

Belinda Zhou
    Sep 12, 2019 12:00 PM  PT
Pinduoduo Catches Up With in Market Cap
author: Belinda Zhou   

Shares in Pinduoduo Inc. (Nasdaq: PDD) have been on a wild ride since July - so much so, that the company's market capitalization has come close to that of China's second-largest online retailer Inc. (Nasdaq: JD) this week. The market cap of was $46.1 billion as of intraday Thursday, only slightly outweighing Pinduoduo's $42.3 billion.

PDD, backed by Tencent Holdings Ltd. (HKEX: 0700), recently replaced Baidu Inc. (Nasdaq: BIDU) in the top five most valuable internet companies in China. 

In August, shares in Pinduoduo climbed 45 percent, from $22.66 per ADS to $32.77 by month's end. Since then, the stock in the Shanghai-based discounter platform has remained on a steady climb. 

Pinduoduo has set an active trading volume day with a reported 6 million contracts on Wednesday, citing Nasdaq. It hit a peak of 42 million trades on Aug. 21 when it announced a stellar earnings report for the second quarter and smashed analysts' estimates.

Launched by the former Google engineer in 2015, Pinduoduo became a publicly traded company in July 2018, raising a massive $1.6 billion in its initial public offering with backing from investors including Tencent.