Pinduoduo Inc. (PDD) is an eCommerce mobile-based platform in china that offers a wide range of products of daily life. Despite the positive unaudited fourth quarter and fiscal year 2020 financial results announced by Pinduoduo Inc. (PDD), PPD stock fell on Wednesday’s pre-market trading as PDD stock price was down by 6.36% to drop at $150.65 a share at the time of this writing. At the previous closing, PDD stock was up by 1.11% with a $160.89 per share price. Let’s understand deeply the current happenings.
- PPD stock generated RMB26,547.7 revenue in the fourth quarter which is 146% higher than the MB10,792.7 million in the same quarter of last year.
- Pinduoduo stock suffered RMB11,526.1 million cost of revenue in the fourth quarter of 2020 representing a 466% increase as compared to the same tenure in the previous year.
- Operating expenses reached MB17,069.4 million as compared to RMB10,890.6 million in the same quarter of the prior year.
The fiscal Year 2020 highlights
- PPD stock revenue surged to RMB59,491.9 million with 97% growth as compared to the RMB30,141.9 million revenue of last year.
- The total cost of revenues reached RMB19,278.6 million which shows a 204% increase over the year.
- Total Operating expenses reached RMB49,593.5 million as compared to RMB32,341.3 million of last year.
PDD stock to promote digital inclusion in Agriculture Sector.
Pinduoduo stock is focused on the development of the agriculture sector in China. PDD held live streaming session in the miserable days of COVID-19 to promote the agriculture products of farmers and launched the “Help the Farmers” channel to help farming communities. This new method of promoting agriculture products has risen the demand for new roles with different skills thus creating new opportunities for individuals committed to the agriculture sector. PDD has prepared more than 100,000 new farmers to operate the eCommerce business and plans to train 100,000 more new farmers to meet the eCommerce business requirements.
Colin Huang steps down from His role.
PDD also announced today that its founder Colin Huang will step back from the board of directors effective today to focus on the research in food and life sciences in order to devise long-term strategies for the Pinduoduo stock. Huang will not sell his shares for a further three years.
Though PDD stock released the earnings report that has beaten the revenue estimates PDD stock price is still down in the pre-market. This is something confusing for investors but it’s a fact that the stock market is unpredictable. For long terms prospects, the PDD stock can be a good bet for investors due to its expansion and digitization in the agriculture sector. Hence investors are required to do a lot of homework before taking any decision.