(Reuters) -China’s Pinduoduo Inc beat Wall Street estimates for third-quarter revenue on Monday, helped by COVID-related lockdowns in the country that forced consumers to shop online, sending its shares up 10% in U.S. premarket trade.
The intermittent lockdowns and a recovery in consumer spending helped Pinduoduo and other online retailers gain business in the by-gone quarter.
Pinduoduo’s revenue increased 65% to 35.50 billion yuan ($4.99 billion) in the quarter ended Sept. 30, surpassing estimates of 30.94 billion yuan, according to Refinitiv data.
Pinduoduo’s performance comes as the latest reports by larger e-commerce peers point to a recovery in the Chinese market.
JD.com Inc posted an 11.4% rise in third-quarter revenue last week and said that it was seeing signs of a consumption recovery. Rival Alibaba Group Holding Ltd reported 3% revenue growth for the second quarter.
($1 = 7.19 Chinese yuan renminbi)
(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)
