Pinduoduo's stock sinks after wider-than-expected loss

Shares of Pinduoduo Inc. sank 6.3% in premarket trade Wednesday, after the China-based e-commerce platform provider reported a wider-than-expected fourth-quarter loss, although revenue was above expectations. The company swung to a net loss of RMB2.42 bln, or the equivalent of $352.5 million, from a profit of RMB13.6 mln. On a per-share basis, the U.S. dollar equivalent loss in the latest quarter was 32 cents, or 24 cents on an adjusted basis. The FactSet consensus was for a loss of 22 cents a share. Revenue rose nearly five-fold to RMB5.62 bln, or $822.3 million, from RMB1.18 bln, compared with the FactSet consensus of $777.9 million. Gross merchandise volume increased 234% to RMB471.6 bln, or $68.6 billion, from RMB141.2 billion, while average monthly active users rose 93% to 272.6 mln. The stock, which went public in July 2018, has soared 35% over the past three months, while the Renaissance IPO ETF has climbed 21% and the S&P 500 has gained 5.3%.

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