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Why did Pinduoduo stock rocket today? Strong Q3 results stoke investor optimism

  • Pinduoduo (NASDAQ:PDD) shares jumped more than 12.6% on Monday after the Chinese e-commerce company reported third-quarter results that handily topped expectations.
  • The Colin Huang-founded company said it earned an adjusted $1.21 per share as revenue rose 65% year-over-year to $4.99B. Analysts were expecting adjusted earnings of 72 cents per share and $4.6B in revenue.
  • The boost in revenue was attributed to online marketing services and transaction services.
  • “We continued to deepen our value creation in the third quarter,” said Mr. Lei Chen, Chairman and Chief Executive Officer of PDD in a statement. “We will increase our R&D investment to further enhance the supply chain efficiency and agricultural digital inclusion.”
  • The strong rally in Pinduoduo (PDD) shares on Monday resulted in several Chinese technology ETFs also rising.