Editor’s Observe: Sign up for CNN’s Meanwhile in China newsletter, which explores what you need to know about the country’s rise and how it impacts the world.
Hong Kong
CNN
—
Alibaba founder Jack Ma has known as for “change” because the stellar efficiency of a competitor causes a stir at his e-commerce firm.
On Wednesday, the billionaire responded to a latest rally within the inventory of PDD (PDD), the group behind Chinese online shopping giant Pinduoduo and US-based retail upstart Temu.
PDD reported blockbuster third-quarter earnings Tuesday, smashing analyst expectations. Income soared 94% to 68.8 billion yuan ($9.7 billion) in contrast with the identical interval within the earlier yr, whereas working revenue surged 60% year-on-year to just about $16.7 billion (about $2.3 billion).
That has pushed up the corporate’s inventory in New York dramatically, taking it 18% greater Tuesday, one other 2% greater Wednesday, and 4% greater on Thursday.
In consequence, PDD’s market cap has soared to $195.9 billion, eclipsing Alibaba’s (BABA) $190.5 billion. It’s the primary time PDD has surpassed its older rival, in keeping with knowledge supplier Refinitiv Eikon.
Alibaba workers had taken discover. In a submit on the corporate’s inside discussion board Wednesday, one staffer talked about that PDD was closing in on the Hangzhou-based group, prompting Ma to weigh in, in keeping with an individual conversant in the matter.
“Please give us extra constructive feedback and solutions, particularly progressive concepts. I consider that everybody in Alibaba in the present day is watching and listening,” he wrote in a remark, in keeping with the supply.
Ma went on to congratulate PDD on its latest sturdy efficiency, including that “the period of AI e-commerce has simply begun, and it is a chance and a problem for everybody.”
“I firmly consider that Alibaba will change,” he wrote. “Everybody has been superior, however those that can reform for tomorrow and are keen to pay any value and sacrifice are revered. Again to our mission and imaginative and prescient, Alibaba individuals, come on!”
Ma based Alibaba in 1999. He stepped down as chairman of the corporate in 2019, about a year before touchdown in scorching water with Chinese language authorities for criticizing the nation’s monetary regulators and banks. Since then, the entrepreneur has saved a comparatively low profile whereas remaining an Alibaba shareholder.
Alibaba’s shares have tumbled 15% to date this yr because it battles considerations over a sweeping restructuring, a leadership shuffle and fierce competitors.
In the meantime, PDD has loved a bumper yr. On Tuesday, chairman and co-CEO Chen Lei attributed its ends in half to the restoration of the Chinese language financial system, which he mentioned on an analyst name was “clearly felt” by the corporate.
PDD, which was based in 2015, has additionally not too long ago attracted worldwide consideration for its launch of Temu, an inexpensive on-line superstore that has develop into hugely popular in markets equivalent to the USA and Australia. Temu sells all the pieces from residence items to attire and electronics.
