Pinduoduo stock: buy or sell
Apr 22nd, 2021
Pinduoduo stock brief
- Pinduoduo closed on Wednesday at $128.67 after climbing a 2.44%.
- Looking at the chart, price is drawing an scaled downtrend since last February with lower tops and lower bottoms. shares price lost a -39.48% since the downtrend started.
- China Renaissance Securities posted a hold rating for Pinduoduo on Tuesday
- Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China.
Should I buy Pinduoduo stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $PDD stock a buy?
In the current situation of Pinduoduo there is not any eligible buy setup. This doesn't mean $PDD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Pinduoduo stock?
Do you know when is it time to sell Pinduoduo stock?. Trading strategies allow us to avoid impulsive decisions based on our personal sentiments or the noise surrounding the market. When selling, as well as buying, detailed setups are very simple to use but are only applicable for selling stocks in your porfolio, not for shorting $PDD stock
A guiding principle is that you must never keep an open trade that produces higher than expected losses by the time of the buy. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Pinduoduo stock?
Currently, Pinduoduo stock doesn't match any of our preferred sell setups, so if you hold Pinduoduo shares and your operation is in profit probably is not time to sell now
In the last month, 2 analyst ratings were published for Pinduoduo
|Mar 23rd, 2021|
|Macquarie||Buy → Neutral|
|Apr 20th, 2021|
|China Renaissance Securities|| |
Pinduoduo stock analysis
Pinduoduo continues trending lower since last February, and has accumulated a selloff of -39.48%. Like in all downtrends, the stock oscillates drawing lower tops and bottoms. In this case, we have seen 2 consecutive lower tops.
Supports and resistances
The current resistances are:
The current supports are:
Relative strength index
The RSI broke out the oversold line of 30 in early March after just being in the oversold zone for just one day (what can be considered a strength sign). The RSI value on Wednesday was 39.2
Pinduoduo stock price history
Pinduoduo went public priced at an adjusted price1 of $26.50 on Jul 2018. Since then, PDD stock surged by 385.55%, with an average of 192.78% per year. If you had invested thousand dollars in Pinduoduo stock on the IPO, it would have a value of $4,855.47 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Pinduoduo stock
Nobody knows how much a stock will be priced tomorrow. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and usually. If you are a small investor you shouldn't buy or sell based on these price targets.
There is just one price target available for Pinduoduo that predicts a price of $157.00.
|Brokerage firm||Price target|
|Mar 23rd, 2021|
|Macquarie||$171.00 → $157.00|
|Apr 20th, 2021|
|China Renaissance Securities||Not available|
Earnings and financials
Pinduoduo ($PDD) hosted the financial event and released the report in mid-March. Pinduoduo underperformed market estimates and posted of $-0.02, that is a -300.00% less than the initial forecasts of $0.01. In contrast, reported sales were $4.1 billion compared to estimates of $3.0 billion.By comparison, the EPS for the same quarter last year was $-0.72, so current EPS is a increase of 97.22%. Looking at sales, figures skyrocketed a 145.98% compared to $107.9B same quarter 12 months ago.
Pinduoduo ($PDD) releases quarterly earnings report mid next May. Estimated for this quarter is $-0.40, compared to $-0.02 that was reported for Q4.
Please read:The opinions given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have any knowledge of the particular situations of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for general educational reasons only
|Wednesday, April 21st, 2021|
|Day range||$122.97 - $129.1|
|Average true range||$7.19|
|50d mov avg||$156.66|
|100d mov avg||$159.53|
|200d mov avg||$125.36|
|Earnings date||May 21st, 2021|