PDD Holdings (NASDAQ: PDD), China’s third-largest e-commerce company, saw its debut on July 26, 2018, at $19 per ADS. After peaking at $202.82 on February 17, 2021, the company’s revenue grew at a compound annual growth rate (CAGR) of 76% from 2018 to 2024. However, analysts predict a slowdown, expecting revenue and net income to grow at modest CAGRs of 12% and 7%, respectively, between 2024 and 2027 due to increased competition from Alibaba and JD.com.
Conversely, MercadoLibre (NASDAQ: MELI), the largest e-commerce platform in Latin America, has outpaced PDD with a 56% CAGR in revenue from 2018 to 2024 and a forecasted 29% revenue growth through 2027. Headquartered in Uruguay and operating across 19 countries, MercadoLibre benefits from a growing fintech ecosystem through its Mercado Pago platform and expects net income to rise at a CAGR of 62%. Despite its higher valuation at 34 times next year’s earnings, analysts suggest that MercadoLibre’s broader diversification and growth potential justify the premium compared to PDD.
