T. H. Data Flash - Pinduoduo Inc. – August & 3Q19E: Expect 3Q19 Revenue To Be Better Than Consensus
We are positive on PDD’s 3Q19E performance. We believe the company is still in the stage of building up its e-commerce ecosystem, which requires significant sustainable traffic to operate. Therefore, at the current stage, the key of the business is to buy as much traffic as it can and then sell the traffic to merchants by matching the SKUs with users. That’s why sales and marketing is one of the important factors for PDD as it directly results in revenues.