Episode notes
Daniel Mahncke and Shawn O'Malley take a deep dive into Pinduoduo (NASDAQ: PDD), the Chinese retail giant that has overtaken local competitors like Alibaba and JD.com and expanded internationally with Temu, which has become the most-downloaded e-commerce app in the world. They discuss how to think about the lack of disclosures and what the margin decline and growth deceleration mean for the business going forward. But also whether this presents an exceptional buying opportunity at a single-digit earnings multiple and about 60% of the company’s market capitalization in cash.
IN THIS EPISODE YOU’LL LEARN:
(00:00:00) Intro
(00:10:59) How PDD became one of China’s leading marketplaces
(00:19:17) What makes PDD’s business model stand out
(00:22:58) How PDD compares to Chinese competition
(00:31:56) What makes China’s e-commerce market different
(00:33:24) What happened to margins and growth
(00:47:13) How Temu revolutionized international e-commerce
(01:19:31) Valuation discussion of PDD
(01:24:59) Whether PDD is valued attractively
(01:27:25) Whether Shawn and Daniel add PDD to the Intrinsic Value Portfolio
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive The Intrinsic Value Mastermind Community.
- Track The Intrinsic Value Portfolio.
- Learn more about how to join us in NYC for our Intrinsic Value Conference.
- Portfolio Review Submit Tool.
- Value Investors Club Pitch on PDD.
- Hayden Capital Investment Memo on PDD.
- Check out our previous Intrinsic Value breakdowns: Amazon, Sea Limited, Mercado Libre, Shopify.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
NEW TO THE SHOW?
- Get smarter about valuing businesses through The Intrinsic Value Newsletter.
- Check out The Investor’s Podcast Starter Packs.
- Follow our official social media accounts: X | LinkedIn | Facebook.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS
Support our free podcast by supporting our sponsors:
References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
