Pinduoduo Inc. (PDD) will announce its financial results for the fourth quarter on March 21.
Pinduoduo’s business runs on a marketplace model. It is China’s largest agriculture-focused technology platform that connects farmers and wholesalers with consumers directly.
Being an ecommerce player, Pinduoduo relies on the digital platform for its business to run its operations. The firm generates revenue from online marketing, transaction services, and merchandise sales. Now, the more the number of visitors arrive to the website, the better is the chances of increased sales volumes. As a result, the company’s revenue is greatly reliant on the popularity of its online presence.
Thus, looking at the website visits data can provide more meaningful information about the company ahead of its Q4 release.
What do Pinduoduo Q4 Website Visits Reflect?
We noticed through the tool that overall expected visits to the Pinduoduo website fell in Q4. In particular, the total projected worldwide visits to pinduoduo.com decreased by 19.3% sequentially from the third quarter.
The drop in the monthly users suggests that Pinduoduo’s revenues from transaction services and merchandise sales may have declined over the yet-to-be-reported quarter. Also, the dip in website visits indicates a drop in monthly active users and the number of active buyers, all of which contribute to lower top-line growth.
In addition, website visits to pinduoduo.com dropped 45.3% year-over-year to 843.8k in Q4.
This fall in website visits could be attributed to factors such as lower GDP, rising interest rate risks, and sluggish consumer trends in China, all of which could have harmed Pinduoduo’s business.
Wall Street’s Take
The Wall Street analysts are optimistic on Pinduoduo, with a Strong Buy consensus rating based on three Buys and one Hold. The average PDD stock prediction of $92.00 implies upside potential of approximately 115.9% to current levels for this stock.
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