PDD's value-for-money positioning and growth of its Temu marketplace has helped the company lead China's e-commerce arena, analysts said, making it the country's most valuable company in the segment.
PDD Holdings reported stellar first-quarter results on Wednesday last week, sending its shares surging as much as 7.5%, and driving its market-cap past that of rival Alibaba Group .
PDD shares have more than doubled in value — up 109% — in the past year, according to LSEG data.
PDD, which also owns Chinese discount shopping app Pinduoduo has a market-cap of about $208 billion, compared with Alibaba's $196 billion, according to LSEG data.
The market has "now more than priced in" the two key concerns – domestic competition and U.S.-China tensions – which were behind our earlier downgrade on PDD in March, said Keung.
Persons:
Morningstar, Chelsey Tam, PDD, Goldman Sachs, Temu, Ronald Keung
Organizations:
PDD Holdings, Alibaba, Morningstar
Locations:
China