Pinduoduo Catches Up With JD.com in Market Cap
Shares in Pinduoduo Inc. (Nasdaq: PDD) have been on a wild ride since July - so much so, that the company's market capitalization has come close to that of China's second-largest online retailer JD.com Inc. (Nasdaq: JD) this week. The market cap of JD.com was $46.1 billion as of intraday Thursday, only slightly outweighing Pinduoduo's $42.3 billion.
PDD, backed by Tencent Holdings Ltd. (HKEX: 0700), recently replaced Baidu Inc. (Nasdaq: BIDU) in the top five most valuable internet companies in China.
In August, shares in Pinduoduo climbed 45 percent, from $22.66 per ADS to $32.77 by month's end. Since then, the stock in the Shanghai-based discounter platform has remained on a steady climb.
Pinduoduo has set an active trading volume day with a reported 6 million contracts on Wednesday, citing Nasdaq. It hit a peak of 42 million trades on Aug. 21 when it announced a stellar earnings report for the second quarter and smashed analysts' estimates.
Launched by the former Google engineer in 2015, Pinduoduo became a publicly traded company in July 2018, raising a massive $1.6 billion in its initial public offering with backing from investors including Tencent.
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