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E-Commerce Stock Rises on International Expansion

Options bulls have been running to PDD lately

Deputy Editor
Aug 23, 2022 at 10:39 AM
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Pinduoduo Inc (NASDAQ:PDD) is gathering attention today, after Reuters reported that the China-based e-commerce giant plans to launch an international platform next month, which will bring it into the U.S. This will mark the company's biggest global push to date. At last check, PDD was up 1.9% at $48.86. 

The stock found a floor at the $45 level this month, however, pressure from its 180-day moving average has kept a lid on gains. Year-to-date, the equity is down roughly 16%. 

PDD calls have flown off the shelves lately. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 8.37 ranks higher than all other readings from the past year. This bullish sentiment appears to be continuing today, with 5,858 calls exchanged so far in comparison to 2,967 puts. 

Analysts feel similarly, as six of the nine in coverage carry a "buy" or better rating on PDD. Plus, the 12-month consensus price target of $71.76 is a 46.4% premium to current levels. 

 

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