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What is $PDD and Why is it Trending?

This morning, on investgoodseed.com, there was an increase in the search volume for $PDD, Pinduoduo Inc. What happened?

Pinduoduo is a Shanghai-based e-commerce platform that offers a wide range of products. Pinduoduo differentiates itself through its integration of social components into the traditional online shopping process. According to Motley Fool, Pinduoduo’s sales growth is 87.1% for the present quarter and 191.2% for the next. This astronomical growth trend has been facilitated by the company’s bulk-selling model. Through bulk sales, Pinduoduo is able to bypass layers of distribution and keep their overhead costs low as a result. In the past month alone, the world’s largest interactive e-commerce has seen its stock price soar from $100 to $150 as of today, a 33% increase.

After presenting such high growth rates for the past month, analysts are beginning to become bullish on the e-commerce giant. Even during a pandemic, Pinduoduo has still been able to outperform every projection they were given. According to MarketWatch, Chief Executive Chen Lei said, “We are seeing large-scale changes in consumer habits as a result of COVID-19, which are accelerating digital transformation across different sectors.” Will COVID-19 continue to facilitate the meteoric rise of Pinduoduo? How will other large Chinese companies like Alibaba $BABA react to the growing popularity of Pinduoduo?

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