PDD Holdings Inc
NASDAQ:PDD

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PDD Holdings Inc
NASDAQ:PDD
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Price: 119.24 USD -0.47% Market Closed
Market Cap: 169.3B USD

Net Margin
PDD Holdings Inc

28.6%
Current
23%
Average
1.5%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
28.6%
=
Net Income
112.4B
/
Revenue
393.8B

Net Margin Across Competitors

Country Company Market Cap Net
Margin
CN
PDD Holdings Inc
NASDAQ:PDD
169.3B USD
29%
US
Amazon.com Inc
NASDAQ:AMZN
2.1T USD
10%
ZA
Naspers Ltd
JSE:NPN
1.1T Zac
48%
CN
Alibaba Group Holding Ltd
NYSE:BABA
288.1B USD
12%
UY
MercadoLibre Inc
BMV:MELIN
2.5T MXN
9%
AR
Mercadolibre Inc
NASDAQ:MELI
126.6B USD
9%
NL
Prosus NV
AEX:PRX
107.4B EUR
133%
CN
Meituan
HKEX:3690
827.7B HKD
11%
US
DoorDash Inc
NASDAQ:DASH
92.5B USD
3%
KR
Coupang Inc
NYSE:CPNG
49.7B USD
1%
CN
JD.Com Inc
HKEX:9618
380.3B HKD
4%

PDD Holdings Inc
Glance View

Economic Moat
Narrow
Market Cap
169.3B USD
Industry
Retail

Pinduoduo Inc., founded in 2015 by former Google engineer Colin Huang, quickly rose to prominence within China's hyper-competitive e-commerce market by pioneering a unique social commerce model. Instead of the traditional solitary shopping experience, Pinduoduo transformed online shopping into a social activity where users embarked on digital adventures together. Leveraging the power of group buying, it incentivized users to form teams to purchase items at significantly reduced prices. This innovative approach was driven by a platform seamlessly integrated with social networks like WeChat, creating a vibrant community of deal-seekers engaged in gamified experiences. Such a model thrived on the synergy between collective buying power and social interaction, fueling the platform's meteoric growth and extensive user engagement. Pinduoduo generates revenue primarily through transactions on its platform, much like its more established e-commerce rivals. The crux of its business strategy involves collecting merchant fees, which include commissions and advertisement fees from vendors seeking increased visibility among the vast Pinduoduo user base. By attracting a wide array of merchants with lower entry barriers and significant consumer data insight, the company has cultivated a diverse marketplace teeming with competitively priced products. Additionally, the platform's monetization through advertising has been instrumental in generating income, as sellers vie to highlight their offerings to the expansive audience. This enticing combination of social shopping and monetization prowess underpins Pinduoduo's compelling market position and dynamic growth trajectory in the world of e-commerce.

PDD Intrinsic Value
214.5 USD
Undervaluation 44%
Intrinsic Value
Price
What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
28.6%
=
Net Income
112.4B
/
Revenue
393.8B
What is the Net Margin of PDD Holdings Inc?

Based on PDD Holdings Inc's most recent financial statements, the company has Net Margin of 28.6%.

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