$PDD(PDD.US)

Ah Xiu shares a simple argument today: Pinduoduo's stock price may be overly optimistic in the short term.

A long bullish candlestick can change many people's views, but Pinduoduo is still the same Pinduoduo; it needs time to do the right things.

This is mainly because some people don't realize how difficult it is for Pinduoduo to build its brand. This requires a lot of time and effort. The compliance issues in overseas markets cannot be solved by Pinduoduo simply throwing money at them, because Pinduoduo is now operating the Temu platform itself, and merchants are just suppliers.

This means that the compliance materials for overseas markets are up to the merchants to decide whether to produce and handle. Without sufficient incentives, this matter is prone to buck-passing among the parties involved. However, Pinduoduo cannot directly spend money to solve this problem; it can only act as an assistant to help merchants handle compliance materials.

Furthermore, building a brand and making assets heavier both require time.

During this period, the stock price will fluctuate. As a long-term investor, you naturally don't need to worry about these fluctuations. However, short-term holders should be cautious when buying Pinduoduo. Otherwise, when the Pinduoduo "vehicle" hits a bump, it's easy to get thrown off.