The stock price of Chinese social e-commerce giant Pinduoduo (NASDAQ: PDD) is riding high recently. On June 16, Pinduoduo reached an all-time high of USD 84, crossing a USD 100 billion market cap for the first time.
Pinduoduo’s share price closed Tuesday at USD 78, more than doubled the price at the beginning of this year.
At the same time, e-commerce competitor JD.com has announced that it will raise HKD 29.8 billion (USD 3.8 billion) through its secondary listing on the Hong Kong Stock Exchange on June 18.
Boosted by the ongoing annual mid-year online shopping festival “618”, the fast recovery of logistic in the post-coronavirus period, and better-than-expected Q1 earnings reports, both Pinduoduo and its rival JD.com (NASDAQ: JD) have seen their stock prices soar in the past month.
Notably, Pinduoduo and JD.com have taken turns dwarfing each other on market cap multiple times this year. As of June 16, Pinduoduo has a USD 4.4 billion advantage over JD.com.
The latest stock price surge has made Pinduoduo’s CEO and founder Colin Huang the third richest man in China after Tencent (HKEX: 0700)’s Pony Ma and Alibaba (NYSE: BABA; HKEX: 9988)’s Jack Ma.
Huang’s net worth now stands at USD 40.5 billion, already on par with the market cap of Baidu (NASDAQ: BIDU), which is considered one of the three largest Chinese internet magnates in the 2010s, as per Forbe‘s real-time ranking.
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In 2020 Q1, Pinduoduo generated total revenue of USD 923.8 million, an increase of 44% year-on-year (YoY), beating market expectations of USD 735.1 million. Meanwhile, annual active buyers on the platform reached 628.1 million, up 42% YoY, KrASIA reported.