PDD Holdings Inc. (NASDAQ: PDD) is a prominent e-commerce company that is worth considering investments in. The company is a global e-commerce group with a share of twenty percent in China's e-commerce market. It owns two online retail websites, Temu and Pinduoduo.
PDD Business Model
One of the most well-known online retailers of agricultural products in China is Pinduoduo. Conversely, Temu is an online store in the US and Europe that offers handmade goods, beauty products, home goods, and apparel.
The business model employed by PDD Holdings (NASDAQ: PDD) makes bulk buying possible. Direct delivery of goods in large quantities from manufacturers reduces costs by doing away with middlemen. Temu, which is well-known for its incredibly affordable goods and prompt shipping, collaborates with UPS, FedEx, and USPS among other large distributors to guarantee that every delivery is handled safely and promptly.
PDD Earnings Estimate By Analysts
The Chinese e-commerce marketplace, according to HSBC, was estimated to be worth $155 billion in 2019 and is projected to increase from $350 billion in 2023 to $500 billion through the end of 2025. More than 60% of Chinese consumers shop online, and e-commerce accounts for 37% of all purchases from retailers in the nation. Since online shopping makes up 22% of US consumer spending and 16% of Western European retail spending, the US and European markets are appealing even though the Chinese market is saturated.
Being present in China justifies PDD Holdings's (NASDAQ: PDD) ranking as one of the top e-commerce stocks to purchase. PDD's Temu is poised to emerge as one of the most popular platforms globally, holding twenty percent of the market within the nation and expanding its presence in North America and Europe. PDD's growth over the last year has been outstanding. PDD Holding's overall earnings in the first quarter of 2024 was RMB 86.8 billion, a 131% rise compared to the same period the previous year.
