Pinduoduo Reports Surprising Earnings and CrowdStrike Is Being Inducted Into the NASDAQ 100
Pinduoduo is an ecommerce business that offers a range of products on its platform. They are based in Shanghai, China, and they have a market cap of $124.226 billion, making them a very valuable company.
On Tuesday, Pinduoduo reported their quarterly earnings. For the first time ever, the company reported a profit, with the number being $372 million. However, revenue numbers slightly missed by about $500 million, and Pinduoduo VP of Finance Tony Ma said that they don’t expect to be profitable in coming quarters and this profit is likely a one-off. Even then, investors were relieved to hear some good news for the company, who has struggled in the last few months due to increased regulations on Chinese companies. At the end of the day, Pinduoduo closed at $99.12, up 22.25% on the day.
CrowdStrike is a technology company located in the Bay Area of California. They specialize in the cloud, which has been a hot industry in the last few years, and they have a market cap of $59.982 billion.
On Tuesday, it was announced that CrowdStrike would be added to the NASDAQ 100, a key index that tracks tech stocks. Whenever a stock gets added to an index, all of the funds tracking it need to buy shares of the stock, which means there is an increase in buying volume. We saw this occur with Tesla’s inclusion in the S&P 500, and other stocks have witnessed this occur too. Being included in the NASDAQ is no joke, and CrowdStrike investors seemed to like this news. The stock closed at $265.63, up 8.07%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.