On November 29th, Alibaba founder Jack Ma spoke out on the Alibaba intranet under the name "Partner Jack Ma", responding to questions from Alibaba employees regarding the difference in market value between Pinduoduo and Alibaba, as well as operational suggestions.
Jack Ma said, "I firmly believe that Alibaba will change, Alibaba will change. All great companies are born in winter. The era of AI e-commerce has just begun, and it is both an opportunity and a challenge for everyone. Congratulations to PDD for their decision-making, execution, and efforts in the past few years."
On the evening of the 28th, Pinduoduo released its financial report for the third quarter of 2023 as of September 30th. The company's revenue for the quarter was 68.84 billion yuan, a year-on-year increase of 93.9%, and its net profit under non US accounting standards increased by 37% year-on-year to 17.03 billion yuan.
After the financial report was released, Pinduoduo's US stock market surged by 18%, with a market value exceeding $185 billion at one point, while Alibaba's market value during the same period was about $1940, with a difference of less than $10 billion between the two.
Seeing the market value gap between the two "old enemies" continue to narrow, Alibaba employees can't sit still.
Alibaba employee A posted on the intranet saying, "It's hard to sleep at this moment, and I can't even imagine that the market value of Pinduoduo has directly reached 185.5 billion US dollars, which is only 8 billion compared to our 194.3 billion. It's really surprising. That inconspicuous person is about to become the big brother."
The employee posted that they didn't want to post this post without any nutritional content, but after thinking about it, they decided to leave it as a reminder and also as their own encouragement. I hope to work together with the group brothers to contribute and surpass them.
Following closely behind, employee B posted, "Simple buy, simple refund, less tricks, and more affordability. I have never felt that using Tmall or JD.com is more high-end than using Pinduoduo... The original intention of making the world no difficult business is to serve and achieve the wider masses of the people."
As the number of posts increased, Jack Ma, who rarely spoke out, replied to B with the signature "Partner Jack Ma" on the intranet, saying: "Very good.". Please provide constructive suggestions and suggestions. Especially innovative ideas. I believe today's Alibaba people are all watching and listening. I firmly believe that Alibaba will change, and Alibaba will change. All great companies were born in winter. The era of AI e-commerce has just begun, and it is both an opportunity and a challenge for everyone. Congratulations to PDD on their decisions, execution, and efforts over the past few years. Everyone has done well, but only those who can reform for the future of the Tianniu and are willing to pay any price or sacrifice are respected. Back to our mission and vision, Ali people, come on!
Several Alibaba people told reporters that it was not surprising. "Even without speaking up, Teacher Ma is often active on the intranet and has always been paying close attention to the opinions and 'morale' of grassroots employees." An employee said.
Multiple partners posted on the intranet to "cheer up" Alibaba employees
Since the beginning of this year, Alibaba has made significant internal reforms. Several partners are also posting through the intranet to boost the morale of Alibaba employees.
On November 22nd, in response to rumors of Jack Ma selling a huge amount of Alibaba stocks, Alibaba Partner and Chief Talent Officer Jiang Fang posted on the Alibaba intranet, saying, "The external hype that he sold a huge amount of stocks shows a lack of confidence in Alibaba's business, completely disregarding the fact that this is a long-term plan and the high selling price he set for believing that Alibaba's business will further appreciate."
Jiang Fang conveyed Jack Ma's firm confidence in Alibaba to all Alibaba people through the intranet, "Alibaba's stock is currently significantly lower than Alibaba's actual value, and he will not sell it."
On the late night of November 17th, Jack Ma's office lawyer also made it clear that the previously disclosed sale plan was a long-term plan. Jack Ma firmly believes in Alibaba, as its current stock price is far below its actual value, and he will still firmly hold onto Alibaba's stock.
Alibaba Chairman Cai Chongxin also posted, saying, "I have been in the company for almost 25 years, and Alibaba has been facing various doubts and challenges from the beginning to the present. But we have persisted as always, overcoming one difficulty after another in these doubts and challenges. Because Alibaba's foundation is to believe that the future will be better." Cai Chongxin said, "Today, the rapid iteration of global technology and business models is a challenge for everyone.", But it's also an excellent opportunity. "As long as we have an open mindset and innovative thinking, we have the opportunity to create another unique Alibaba."
The market value gap between Pinduoduo and Alibaba continues to narrow
Since the disclosure of Alibaba's financial report and Jack Ma's family trust application on November 16th, Alibaba's stock price has suffered a heavy blow. On November 17th, Alibaba Hong Kong's stock market opened with a plunge, a decrease of about 6% from the previous day's closing price. After a slight rebound, it continued to decline. As of the time of the reporter's press release on November 29th, it remained fluctuating at around HKD 72 per share. The latest market value of Alibaba, a US stock, is currently maintained at 195.2 billion US dollars.
Stimulated by soaring performance, Pinduoduo's US stock closed at $139/ADS on the 28th, with a market value of approximately $184.7 billion.
"We can clearly feel the sustained economic recovery, as well as the potential and resilience of the consumer market. With the implementation of a series of consumer promotion policies, the demand for consumer upgrading is becoming increasingly strong. At the same time, we can also see from user behavior that consumer upgrading is not only related to quality, but also to price. It is the optimization of the 'quality to price ratio' and the ultimate pursuit of consumers for high-quality goods at a good price." Co CEO Chen Lei stated during the financial report release.
The financial report shows that in the third quarter, the overall consumption of Pinduoduo platform saw comprehensive growth, with categories such as agricultural and sideline products, beauty and care, digital home appliances, sports and outdoor products achieving varying degrees of growth. The consumption trend of domestic brands continued to heat up.
"In the future, we will continue to invest heavily in agricultural technology, supply chain technology, and overall core research and development, using technology to create long-term positive value," said Chen Lei.
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