Is Pinduoduo the next Alibaba?

Yesterday’s movers:

• Zoom (ZM) was down 16.69% following a weaker than expected quarterly forecast for Q3.
• Virgin Galactic (SPCE) was up 8.96% as it received a positive analyst note
• NetEase (NTSE) was up 8.70% as the company released positive earnings.
• Autohome (ATHM) was up 6.99%  earnings and revenue were beat in yesterday’s quarterly report
• Li Auto (LI) was up 6.30% as the chip shortage cause a potential increase in car prices.

Share to watch:

Pinduoduo Inc (PDD)

Pinduoduo Inc. operates as an e-commerce platform out of China. It operates as a mobile platform offering a range of products similar to Alibaba. PDD’s business is generally concentrated in the agriculture field which represents about 7% of China’s GDP, whoever the company has broadened out and is not just operating in the agricultural sector anymore.

In its previous earnings report, the company reported its first profitable quarter, giving us an indication that if the growth for the company is set to continue that there could be substantially more upside.

Technically the chart seems to be changing directions as we got a break and retest of the falling trend line, near term price movement should see us head to the 200EMA which correlates with the next resistance level if we get a break of the current resistance where price closed yesterday.