PDD Holdings Inc
NASDAQ:PDD

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PDD Holdings Inc
NASDAQ:PDD
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Price: 117.38 USD -0.9% Market Closed
Market Cap: 166.6B USD

Operating Margin
PDD Holdings Inc

27.5%
Current
23%
Average
3.1%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
27.5%
=
Operating Profit
108.4B
/
Revenue
393.8B

Operating Margin Across Competitors

Country Company Market Cap Operating
Margin
CN
PDD Holdings Inc
NASDAQ:PDD
166.6B USD
28%
US
Amazon.com Inc
NASDAQ:AMZN
2.2T USD
11%
ZA
Naspers Ltd
JSE:NPN
1.1T Zac
0%
CN
Alibaba Group Holding Ltd
NYSE:BABA
298.7B USD
14%
UY
MercadoLibre Inc
BMV:MELIN
2.5T MXN
13%
AR
Mercadolibre Inc
NASDAQ:MELI
129.9B USD
13%
NL
Prosus NV
AEX:PRX
108.9B EUR
1%
CN
Meituan
HKEX:3690
824.7B HKD
10%
US
DoorDash Inc
NASDAQ:DASH
91.9B USD
2%
CN
JD.Com Inc
HKEX:9618
384.9B HKD
4%
KR
Coupang Inc
NYSE:CPNG
48.9B USD
2%

PDD Holdings Inc
Glance View

Economic Moat
Narrow
Market Cap
166.6B 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
213.33 USD
Undervaluation 45%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
27.5%
=
Operating Profit
108.4B
/
Revenue
393.8B
What is the Operating Margin of PDD Holdings Inc?

Based on PDD Holdings Inc's most recent financial statements, the company has Operating Margin of 27.5%.

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