Shares of PDD Holdings (PDD 2.80%), a Chinese e-commerce company and owner of discount-priced sites Pinduoduo and Temu, were climbing for the second day in a row today.
Today's gains came one day after the stock soared on a blowout earnings report, seeing strong revenue growth even in a difficult economic environment. The stock was gaining on Wednesday as several Wall Street analysts raised their price targets on the stock and as Alibaba co-founder Jack Ma called out the threat from Pinduoduo in an internal company post.
As a result, PDD stock was up 1% as of 10:54 a.m. ET after gaining as much as 4.2% earlier in the session.
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More cheers for Pinduoduo
At least seven analysts raised their price targets and maintained buy-equivalent ratings on PDD in the aftermath of Tuesday morning's report.
Analysts commented on the rapid growth of Temu, the bargain-priced e-commerce site focused on international markets, and a number of them also raised their estimates on the stock over the next few years.
Comments from Jack Ma also seemed to give PDD stock a boost as he urged Alibaba to "change and reform" to keep up with rivals like Pinduoduo.
Could more gains be ahead?
What was particularly impressive about Pinduoduo's third-quarter report was that its revenue growth came at a time when peers like Alibaba and JD.com are struggling and as the Chinese economy has generally been slow to awaken from COVID-era lockdowns.
PDD's revenue jumped 94% in the third quarter to $9.4 billion, and adjusted net income rose 37% to $2.34 billion. With Temu starting to expand to new countries, there's good reason to expect the e-commerce stock to keep moving higher over the coming quarters.
