Why Pinduoduo Stock Is Rising Today

Pinduoduo Inc PDD shares are trading higher Monday after the company reported second-quarter revenue results that beat average analyst estimates. 

Pinduoduo said second-quarter revenue increased 36% year-over-year to RMB31,439.6 million ($4.69 billion), which beat average analyst estimates of $3.49 billion, according to Benzinga Pro. The company reported quarterly earnings of 93 cents per share. 

"We saw a recovery in consumer sentiment in the second quarter especially during the 618 shopping festival, a reflection of the resilience of overall consumption," said Lei Chen, chairman and CEO of Pinduoduo.

The company ended the quarter with $17.8 billion in cash and equivalents. 

Pinduoduo is the third-largest e-commerce platform by gross merchandise volume and the largest platform by active buyer in China.

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PDD Price Action: PInduoduo has a 52-week high of $71.27 and a 52-week low of $23.21.

The stock was up 13.4% at $65.30 at time of publication.

Photo: StockSnap from Pixabay.