The media reports that PDD Holdings, which ownership structure includes Temu, a company operating in the e-commerce area, is currently sitting at $38 billion in cash.
The mentioned cash position is the largest among all listed firms that are not involved in the practice of dividends paying out and do not have share buyback programs. This was reported by the media on Sunday, September 1.
It is worth noting that last week PDD Holdings ruled out to pay investors. Against the background of the relevant decision, the downward trajectory of the dynamic of changes in the value of the company’s shares was recorded.
PDD Holdings’ stockpiles are twice as large as that of the second-closest contender, which is Tesla. The company’s market capitalization index showed a sharp increase after it moved beyond China.
According to media reports, some investors characterized as an alarming signal that PDD Holdings is involved in the hoarding of cash.
PDD Holdings last week published data on its earnings for the last quarter. The company’s revenue showed an increase of 86%. Profits of the firm grew 156%. At the same time, positive earnings data in this case do not mean that the company is optimistic about its future prospects.
Chairman and chief executive officer of PDD Holdings Lei Chen says that despite the significant progress made over the past few quarters, the firm sees many challenges ahead. Also in this context, the company’s commitment to high-quality development and generation of a sustainable ecosystem was noted. PDD Holdings intends to invest significant amounts of funds in trust in the platform and its safety. The company also intends to support high-quality merchants and tirelessly improve the merchant ecosystem.
As we have reported earlier, Alphabet’s Cash Boom Stimulates Dividend Hopes on Wall Street.
