While the three major US stock exchanges closed on low on Tuesday, Chinese e-commerce platform Pinduoduo rose 5.26% to a record high of $57.83, putting its latest market capitalization at $69.26 billion.
Pinduoduo stock opened with an over 3% increase and rose more than 10% in the middle of the day, which pushed its valuation to over $70 billion at one point. When it closed at $57.83 and a market cap of $69.26 billion, it also overtook JD.com, whose latest valuation was $69.07.
Many believe that the consecutive surge in Pinduoduo’s stock is attributable to the recovery of e-commerce in China. According to a report released by China’s State Post Bureau on May 8, more than 6.25 billion units of packages were delivered in April in the country, up 27% year on year. In addition, online retail sales supported by delivery are expected to exceed 850 billion yuan, which will be a 30.4% year-on-year increase. Stocks of e-commerce companies such as Alibaba, Pinduoduo, JD.com, Vipshop soared on May 8 after the data came out.
During the past Labor Day holiday, major e-commerce platforms including Tmall, Suning and Pinduoduo launched large-scale subsidy events to stimulate consumption. China’s Ministry of Commerce said online sales of physical goods surged 36.3% during the five-day holiday compared to the Labor Day holiday last year.
Pinduoduo will release its first quarter earnings report on May 22.