PDD: Still Positive Towards PDD

Hello everyone! Today i want to share some PDD thoughts with you!

1.

Bad day for portfolio with $PDD Holdings Inc(PDD)$ down 14% but I'm still up >20% YTD.

Why I'm not selling my Pinduoduo shares after the terrible earnings?

• For a company like Pinduoduo a single quarter is not that relevant.

• Management proved its ability building a $600B GMV (like $Amazon.com(AMZN)$ ) ecommerce in 10 years only.

• I won't sell a good company trading at 5X EV/FCF, in particular because I don't see a single better risk/reward opportunity.

2.

Despite all the noise numbers tell us that $PDD Holdings Inc(PDD)$ is still gaining market shares in both China and international market.

Q1 2025 GROWTH IN CHINA:

• $Alibaba(BABA)$ +9%

• $JD.com(JD)$ +16% (government incentives boosted)

• $PDD Holdings Inc(PDD)$ +15% (GMV probably higher, revenue partially impacted by adv discounts)

Q1 2025 GROWTH IN INTERNATIONAL:

• If we consider Google trends Temu is outperforming Aliexpress and year over year.

• Looking at 2024 Temu GMV estimates PDD outperformed again Aliexpress and in growth rates.

• Same story with an even bigger gap for total App downloads.

• Obviously profitability of the model and retention rates will be the most important things in the long run, growth without profits worths less than 0.

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