Chinese online retailer, Pinduoduo Holdings Inc (NASDAQ: PDD), has announced explosive growth in its fiscal first quarter of 2024, surpassing analyst estimates. The company reported a remarkable year-on-year revenue increase of 131%, reaching $12.02 billion (86.81 billion Chinese yuan), exceeding the consensus estimate of $10.65 billion.

Pinduoduo's adjusted earnings per ADS also saw a significant rise, climbing to $2.83 (CNY20.72) from the previous year's CNY6.92, surpassing the analyst consensus estimate of $1.42. The company experienced a boost in revenues from online marketing services and other sources, with a 56% year-on-year increase, reaching $5.88 billion. Additionally, revenues from transaction services skyrocketed, jumping 327% to $6.14 billion.

The company's adjusted operating profit saw a substantial surge, reaching $3.95 billion, marking a remarkable 237% year-on-year growth. Moreover, Pinduoduo holds an impressive $33.5 billion in cash and equivalents as of March 31, 2024, alongside an operating cash flow of $2.92 billion.

Mr. Jiazhen Zhao, Executive Director and Co-CEO of Pinduoduo Holdings, expressed the company's commitment to enhancing the overall consumer experience, strengthening their supply chain capabilities, and nurturing a healthy platform ecosystem. Pinduoduo's success poses a fierce competition to Alibaba Group Holding Limited (NYSE: BABA), cementing its place as a worthy rival.

Investors looking to gain exposure to Pinduoduo can consider ProShares Online Retail ETF (NYSE: ONLN) and Invesco China Technology ETF (NYSE: CQQQ).

In response to the impressive financial performance, Pinduoduo's stock surged 5.14% to trade at $152.92 at the last check on Wednesday. The stock has displayed remarkable growth of 131% over the past 12 months, attracting the attention of investors.

It is important to note that this article presents the information available and does not provide investment advice. All rights reserved.