Pinduoduo stock: buy or sell?

PDD stock price: $35.32 -4.57% At close on March 27th, 2020

Updated on:
March 27th, 2020

2

Pinduoduo closed yesterday at $35.32 and plunged a dreadful -4.57%. On Tuesday PDD boosted a dazzling 5.41%. On Mar/18 PDD collapsed a scary -5.10%.

Should I buy Pinduoduo stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Pinduoduo stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Pinduoduo stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't detect any rating for PDD stock for the last month.

Pinduoduo stock analysis

Daily outlook

Shares of Pinduoduo plunged a dreadful -4.57% and closed at $35.32.

Shares of Pinduoduo ended yesterday at $35.32 and plunged a dreadful -4.57%. On March 19th PDD price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On November, PDD hit new all time highs, pushing higher previous ATH of $43.69 recorded on November. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

PDD stock chart (daily)

Weekly outlook

Shares of Pinduoduo closed this week at $35.32 and boosted a wonderful 5.21%. Early March PDD plunged a bloodcurdling -8.89% in just one week. By mid February PDD rocketed a super good 7.65% in just one week.

Far behind is the all-time high Pinduoduo recorded early November and since then the price is -21.94% below that top. Since SMA20d and SMA40w crossed up late September 2019, PDD price climbed $4.04 per share (12.92%). Since mid August 2019 when PDD stock price broke up the SMA40w line, it gained $12.72 (56.28%).

PDD stock chart (weekly)

Pinduoduo stock price history

Pinduoduo IPO was on July 26th, 2018 at $26.50 per share1. Since then, PDD stock grew a 33.30%, with an average of 33.30% per year. If you had invested $1,000 in Pinduoduo stock in 2018, it would worth $333.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Pinduoduo stock historical price chart

PDD stock reached all-time highs on November with a price of $45.25.

Pinduoduo stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' PDD stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price forecast for Pinduoduo stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Pinduoduo reported good results for 2018-Q4 . Pinduoduo soared Earnings per Share (EPS) by 10.30%, beating experts consensus of $-0.29. Pinduoduo posted $-0.32.
PDD earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
0000-Q2-n/an/an/a
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q4-n/an/an/a
2018-Q1-n/an/an/a
2018-Q22018-08-30n/a-2.04n/a
2018-Q32018-11-20n/a-0.16n/a
2018-Q42019-03-13-0.29-0.32n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Pinduoduo annual turnover boosted an extraordinary 652.26% to $13,120.00 M USD from $1,744.08 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) plummed a -47.77% to -77.87%.

PDD annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2016$505 M-$-291.98 M-57.8%-
2017$1,744 M245.46%$-525.12 M-30.1%79.85%
2018$13,120 M652.26%$-10,217.10 M-77.9%1,845.69%

Quarterly financial results

Pinduoduo posted $5,653.92 M in revenues for 2018-Q4, a 67.65% improvement compared to previous quarter. Reported quarter earnings marked $-2,423.89 M with a profit margin of -42.87%. Profit margin collapsed a -10.30% compared to previous quarter when profit margin was -32.57%. When comparing turnover to same quarter last year, Pinduoduo sales marked an exceptional growth and rocketed a 379.39%. Looking back to recent quarterly results, Pinduoduo posted 7 positive quarters in a row.
PDD quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$5 M-$-30.14 M-561.1%-
2017-Q2$15 M187.35%$-16.16 M-104.7%-46.38%
2017-Q4$1,179 M7,540.48%$13.59 M1.2%-184.09%
2018-Q1$1,385 M17.40%$-201.02 M-14.5%-1,579.07%
2018-Q2$2,709 M95.66%$-6,493.89 M-239.7%3,130.45%
2018-Q3$3,372 M24.49%$-1,098.32 M-32.6%-83.09%
2018-Q4$5,654 M67.65%$-2,423.89 M-42.9%120.69%

Pinduoduo ownership

When you are planning to buy a stock, it's always worth to check its ownership structure.

Pinduoduo shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.34% of all shares.

In case of Pinduoduo stock, 29.38% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for PDD stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

PDD
Market cap$41.0 B
Total shares1,160.0 M
Float shares354.4 M
  - Institutional holdings (%)29.4%
  - Insider holdings (%)1.3%
Shares in short selling0.0%

Pinduoduo summary

Friday, March 27th, 2020
Open$36.20
Close$35.32
Day range$34.72 - $36.20
Previous close$37.01
Session gain-4.57%
Average true range$2.38
50d mov avg$35.87
100d mov avg$37.31
200d mov avg$32.70
Daily pattern
Weekly pattern

Pinduoduo performance

To better understand Pinduoduo performance you must becnhmark its gains with other related stocks in same sector or industry. We selected as the bechmarking frame for Pinduoduo stock.
Stock3m6m12m
PDDPinduoduo-9.99%12.92%42.42%

Pinduoduo competitors

Unfortunately, we could not find any public company that could be defined as Pinduoduo competitor. This doesn't mean Pinduoduo does not have any competitor in the market, it's just we could not detected it.