Temu, the rising star in the e-commerce world, has achieved an impressive feat with 52 million monthly active users in the US, just one year after its launch. Spearheaded by its Chinese parent company PDD Holdings Inc (ticker: PDD), now valued at $193 billion, Temu is reshaping the online retail landscape, challenging giants like Alibaba and JD.com. This rapid growth and strategic market expansion underscore Temu’s potential to redefine global e-commerce dynamics.
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Tradervoice on Temu
The “Popularity over time” average over the past two years for the topic “Temu” is 0.1232 (the scale going from 0 to 1). On Tradervoice.io we see that the popularity score for the majority of the last two years has been in the range of 0.115 to 0.129. So even though we see some significant fluctuations over time, The popularity score stays on level. Looking at “Sentiment over time” the signal is different. Over the past two years the sentiment in what has been written about Temu has consitently been positive, except from a deep dive in December 2022, where sentiment crossed just below 0 (sentiment scale going from -1 to 1). The big drop could be caused by the launch of the Temu app in the U.S. in September 2022, creating uncertainty of whether or not the launch would be successful, or simply be a huge cost for the parent company PDD Holdings Inc. Since December 2022, sentiment has been on an upwards trend currently sitting at 0.0113. The 2-year average of sentiment is 0.008.
In our widget below you can investigate the sentiment on Temu further. Zoom, drag and find relevant articles which will appear when zooming in on one of the clusters on the topic line. The articles are the most representative articles at the specific time they are located on the topic line. If you follow this link you will be able to add financial assets prices to the chart from the upper right search bar, enabling you to look for investment trends based on relations between the topic lines popularity/sentiment and the financial asset selected.
Understanding the chart:
The below “Temu” line is based on advanced text analysis of more than 5 million financial news articles from more than 200 of the biggest financial news platforms worldwide. The circles (clusters) contains actual news articles links, which are the most representative articles in relation to your search, on the exact time they are located on the line. Green = positive tone in content of the article, red = negative tone in content of the article. Zoom in on a cluster to “open” it. Our Sentiment score goes from -1 to 1. If the line is above zero, but decreasing it means it is still a positive sentiment, but going less positive. If the line crosses below zero, sentiment turns into being negative. Go to Tradervoice.io to be able to add financial assets prices enabling you to compare the topic line with different assets to look for investment trends.
Popularity increase/decrease
12 months: -4,91%
6 months: -2,83%
3 months: -1,48%
Sentiment increase/decrease
12 months: 477,42% (due to the big December 2022 drop)
6 months: 12,50%
3 months: 9,35%
Briefly on the History of PDD Holdings Inc, and Temu
PDD Holdings Inc., a Cayman Islands-registered company, owns Temu and the popular Chinese online commerce platform Pinduoduo. In 2023, PDD Holdings Inc shifted its headquarters from Shanghai to Dublin. Temu, a new player in the e-commerce market, made its debut in the United States in September 2022, quickly becoming the most downloaded app there. The platform expanded its reach to Canada in February 2023, around the same time it featured in a Super Bowl ad. By March 2023, Temu had launched in Australia and New Zealand, followed by France, Germany, Italy, the Netherlands, Spain, and the UK. Later, Temu extended its operations to the Latin American market.
10 key Takeaways on PDD Holdings Inc.
- Market Cap: $188.65 billion with an enterprise value of $155.10 billion.
- Shares: 1.33 billion shares outstanding; 0% owned by insiders, 28.74% by institutions.
- Valuation Ratios: Trailing PE ratio of 36.69, forward PE of 19.72, and PEG ratio of 0.71.
- Financial Position: Debt-to-equity ratio of 0.12.
- Return on Investment: ROE of 33.50%, ROIC of 20.78%, and ROA of 17.30%.
- Taxes: Paid $1.31 billion in taxes, with an effective tax rate of 17.07%.
- Stock Price Performance: Increased by 63.47% over the last 52 weeks, with a beta of 0.63 indicating lower than average market volatility.
- Financial Performance: Revenue of $27.31 billion, net income of $6.35 billion, and EPS of $4.43 in the last 12 months.
- Cash Position: $36.32 billion in cash, $2.77 billion in debt, net cash position of $33.55 billion.
- Profitability Margins: Gross margin of 68.21%, operating margin of 23.29%, and profit margin of 23.27%.
Other related topics to search on Tradervoice.io
- PDD stock
- PDD Holdings Inc
- US CPI: (Consumer Price Index)
- Dollar General: As an industry leader in the U.S. dollar store category, Dollar General directly competes with Temu, especially in discount retailing.
- Five Below: Another significant player in the U.S. discount store market, with Temu capturing a notable portion of the market share at the expense of chains like Five Below.
- Dollar Tree: Competes in the same discount retail space as Temu, offering a variety of low-cost products.
- Alibaba: As a giant in the e-commerce sector, Alibaba is a direct competitor, especially in the Chinese market.
- Shein: Known for its budget-friendly fashion offerings, Shein competes with Temu in the affordable apparel segment.
- Amazon: A global e-commerce leader, Amazon competes with Temu and PDD Holdings in various product categories and marketplaces.
- Walmart: Through its online and offline retail presence, Walmart competes in the discount retail and e-commerce space.
- eBay: As an established online marketplace, eBay is a competitor in the e-commerce sector.
If you have any specific requests, questions, or feedback, please don’t hesitate to reach out to me: kristoffer@nordicanalytics.dk.
