![]() ![]() During college, he interned at Microsoft in both China and the US, and spent time on online forums, where he met NetEase founder William Ding. The president of the University called Colin personally to persuade him to attend. His prodigious math skills took him to the upper-class Hangzhou Foreign Language School at age 12 and to Zhejiang University to study computer science on scholarship in college. Huang, Pinduoduo’s founder, grew up humbly in Hangzhou, the home of Alibaba. Investors were rightly concerned by Founder, CEO, and Chairman Colin Huang’s departure from his company they should know that they’re in familiar hands with Lei.įrom that perspective, the first thing to know is that both Lei and Huang are geniuses with a long history of studying and working together. ![]() If you want to go super deep and get the full backstory, we highly recommend you check them out:Īudio : Business Breakdowns & Acquired & Tech Buzz Chinaįor today, we’ll stick to the bits that will be most important for the rest of the piece, including giving the new CEO and Chairman Chen Lei a little more shine. That kind of growth attracts attention, and Pinduoduo has been well-covered. Source: Turner Novak, Updated with current numbers It hit the $100B market cap mark faster than any company in history, too. In just six years, the company, founded by Colin Huang in 2015, reached $9.2B in revenue on the fastest revenue growth trajectory of any company in history. Pinduoduo’s meteoric rise is unprecedented. Recent Developments: Leadership, Grocery, Agriculture, and Payments Lillian’s playing the pragmatic bear, Packy is playing the wide-eyed gweilo optimist. For PDD, the roles are… exactly the same. (Of course, this is for entertainment purposes only, and is not investment advice!) When we wrote about Agora in April, Lillian took the bear case, and I, as usual, took the bull case. Today, we’re going to explore PDD’s last year before debating whether its stock is a buy or sell. ![]() ![]() Under “new” leadership, will Pinduoduo continue to innovate, or will it slowly blend into the Chinese ecommerce landscape as it steals features from its bigger rivals, and they do the same to it? In the bullest of bull cases, it even has a shot at powering commerce in the Metaverse, backed by its largest outside shareholder and Metaverse-kingmaker, Tencent.īut questions remain. No one can argue that its ascent from $0 to nearly $10 billion in revenue has been anything short of spectacular. Fans argue that PDD brought the shopping mall to customers’ phones for the first time. Whether you’re a bull or a bear, Pinduoduo is an absolutely fascinating company that has created, remixed, and popularized key innovations like team buying, “Interactive Ecommerce,” and Consumer-to-Manufacturer (C2M). Would PDD’s $250B fall market cap still stand absent regulatory concerns? Or is PDD still overvalued at $122B? Is it just kind of just like a Groupon for fruit? Groupon grew quickly too. Since then, due to a mix of China fear, the departure of its founder Chairman, and reversion to the mean, PDD has fallen over 50%, back down to where it stands today, a nice, palindromic $96.69 per share for a market cap of $122 billion. As growth stocks around the world flew, PDD flew further and faster, rising as high as $212 per share in mid-February, good for a market cap north of $250 billion. Nothing shocked us anymore, not even a business that doubled revenue to $4.3B in 2019 as a five-year-old company. The write-ups and podcasts slowed to a trickle. By late September, PDD fell back down to a more modest $71. As the temperature outside dropped, things cooled off for Pinduoduo in the fall. ![]()
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