, Columnist
If You Can Explain China's Pinduoduo, Lunch Is on Me
Marketing costs have blown out to exceed revenue, yet investors drove up the stock 60 percent since the company’s IPO.
It’s less of a party on page two of the earnings press release.
Photographer: ShenShi/Visual China GroupThis article is for subscribers only.
If you’re the investor who’s been pumping the stock of China’s Pinduoduo Inc. for the past six months, please give me a call. I’ll take you to lunch.
Over dumplings and Moutai, you can explain why you think the Chinese group-buying company is worth 60 percent more than its IPO price, which is where the stock sat before Wednesday’s earnings wake-up call. If you can convince me that it’s worth seven times more than peers on a price-to-book basis, or 970 times free cash flow, then I’ll order champagne.