Actions of Pinduoduo (NASDAQ: PDD) it’s popped up to 10% today after a bigger peer Alibaba (NYSE: BABA) claimed to have had record sales for China’s Singles’ Day, the largest sales event in the world. Pinduoduo also operates a popular e-commerce platform in China, although it is smaller than that of Alibaba.
Alibaba said the gross volume of merchandise (GMV) for Singles’ Day had already exceeded $ 70 billion when consumers opened their wallets for the shopping event. Singles’ Day was initially popularized by Alibaba and normally starts on November 11th, although it started earlier this year. The event creates even more shopping activity than Black Friday and Cyber Monday in the US
While China has largely contained the coronavirus with strict lockdown measures, many other countries around the world have not, including the U.S. Lack of travel options has increased demand for e-commerce, according to the executive Alibaba Liu Bo. The company also said that luxury brands had particularly strong sales.
The data is encouraging for all Chinese e-commerce tech companies, including Pinduoduo. With 683.2 million active buyers at the end of the second quarter, Pinduoduo’s platform is smaller than that of Alibaba, which had 757 million in its various markets at the end of the third quarter.
Pinduoduo is expected to report third quarter results tomorrow evening. Analysts expect the company to generate $ 1.86 billion in revenue and post a loss per share of $ 0.17.