Pinduoduo stock: buy or sell?

PDD stock price: $68.70 14.50% At close on May 22nd, 2020

Updated on:
May 22nd, 2020

4

After climbing to all-time highs several times in past weeks, Pinduoduo boosted 14.50% to $68.70. On Tuesday PDD plummed a spooky -5.34%.

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. Having a trading strategy 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.

Currently, 2 buy setups are elegible for Pinduoduo stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Pinduoduo stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for PDD stock for the last 30 days.

Pinduoduo stock analysis

Daily outlook

After climbing to all-time highs several times in past weeks, Pinduoduo boosted 14.50% to $68.70.

After reaching all time highs on Tuesday, Pinduoduo boosted 14.50% to $68.70. On March PDD price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily outlook perspective, PDD is drawing an uptrend of rising tops and rising bottoms. Since its last top on Tuesday at $69.50, price slid and found support around $57.02. Breaking down under $57.02 would cancel the current uptrend and it might slide further to test lower supports. Note that $69.50 might act as a resistance line. If Pinduoduo breakouts over $69.50 with average or higher volume, this would be a clear signal that the uptrend resumes. Since SMA50d and SMA100d crossed up on Apr/23, PDD price climbed $16.55 per share (31.74%). On Tuesday, PDD hit new all time highs, pushing higher previous ATH of $67.08 recorded on May 18th. 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 $68.70 after marking a new all time high ($69.50) and climbed an exceptional 12.07%. Late April PDD plummed a frightening -9.11% in just one week. Counting this, it's been 3 climbing weeks in a row, soaring a 46.94%.

Since late September 2019 when SMA20w and SMA40w crossed up, PDD price gained $37.42 per share (119.63%). Since price and SMA40w lines crossed up by mid August 2019, PDD climbed $46.10 (203.98%).

PDD stock chart (weekly)

Pinduoduo stock price history

Pinduoduo stock went public on July 26th, 2018 with a price of $26.501. Since then, PDD stock grew a 159.20%, with a yearly average of 159.20%. If you had invested right after PDD's IPO a $1,000 in Pinduoduo stock in 2018, it would worth $1,592.00 today.

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

Pinduoduo stock historical price chart

PDD stock reached all-time highs on Tuesday with a price of $69.50.

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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not detected any price prediction for Pinduoduo stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Pinduoduo reported beatiful results for 2018-Q4 . Pinduoduo rose Earnings per Share (EPS) by 10.30%, beating experts estimates 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

Compared to 2017, last anual revenues report draw a super good growth of 652.26% to $13,120.00 M USD. Nevertheless, its profit margin (compared to sales) plummed to -77.87%, that is $-10,217.10 million.

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 sales for 2018-Q4, a 67.65% improvement compared to previous quarter. Reported quarter income marked $-2,423.89 million 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 sales to same quarter last year, Pinduoduo sales marked an amazing increase and skyrocketed 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 shares of a company, it's worth to review its ownership structure.

Pinduoduo shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.27% of all shares.

In case of Pinduoduo stock, 28.53% 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.

The following table compares ownership indicators for other stocks related to Pinduoduo:

PDD
Market cap$79.7 B
Total shares1,160.0 M
Float shares388.1 M
  - Institutional holdings (%)28.5%
  - Insider holdings (%)1.3%
Shares in short selling0.0%

Pinduoduo summary

Friday, May 22nd, 2020
Open$62.61
Close$68.70
Day range$60.13 - $69.21
Previous close$60.00
Session gain14.50%
Average true range$4.14
50d mov avg$45.85
100d mov avg$41.44
200d mov avg$38.21
Daily patternlb03a
Weekly pattern

Pinduoduo performance

To measure stock performance is always good to compare with competitors or related stocks. We compared Pinduoduo against in the following table:
Stock3m6m12m
PDDPinduoduo98.73%102.12%238.76%

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.