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Hong Kong
CNN
—
Alibaba founder Jack Ma has called for “change” as the impressive performance of his competitors is having a ripple effect on his e-commerce company.
On Wednesday, the billionaire reacted to the recent rise in the share price of PDD (PDD), the group behind Chinese online shopping giant Pinduoduo and US-based retail startup Temu.
PDD announced massive third-quarter results on Tuesday that shattered analyst expectations. Sales increased 94% year-on-year to 68.8 billion yuan (approximately $9.7 billion), and operating profit increased 60% to approximately $16.7 billion (approximately $2.3 billion).
That caused the company's shares to rise dramatically in New York, rising 18% on Tuesday, another 2% on Wednesday and 4% on Thursday.
As a result, PDD's market capitalization soared to $195.9 billion, surpassing Alibaba's (BABA) $190.5 billion. According to data provider Refinitiv Eikon, this is the first time PDD has outperformed its former rival.
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Alibaba employees It got attention. In a post on an internal forum on Wednesday, a staffer mentioned that PDD was closing in on the Hangzhou-based group, prompting Mr. Ma to speak out, according to people familiar with the matter.
“Please send us more constructive comments and suggestions, especially innovative ideas. We believe that everyone at Alibaba today is watching and listening,” he wrote in a comment, according to the source. .
Mr. Ma went on to congratulate PDD on its recent strong performance, adding, “The era of AI e-commerce has just begun, and it presents opportunities and challenges for everyone.”
“I strongly believe that Alibaba will change,” he wrote. “Everyone was great, but those who can innovate for tomorrow and are willing to make any price or sacrifice are respected. Dear Alibaba, please return to our mission and vision!”
Mr. Ma founded Alibaba in 1999. He resigned as chairman of the company in 2019, about a year before he clashed with Chinese authorities by criticizing the country's financial regulators and banks. Since then, the entrepreneur has kept a relatively low profile despite being an Alibaba shareholder.
Alibaba's stock price has fallen 15% since the beginning of the year as the company grapples with concerns about a major reorganization, leadership changes and fierce competition.
Meanwhile, PDD has had a bumper year. On Tuesday, Chairman and Co-Chief Executive Officer Chen Lei attributed the performance in part to the recovery in China's economy, which he said the company “obviously feels” in a conference call with analysts. Ta.
Founded in 2015, PDD has also recently attracted international attention with the launch of Temu, an affordable online superstore that has become hugely popular in markets such as the US and Australia. Temu sells everything from housewares to apparel to electronics.
