Last week, Jack Ma responded to the recent surge in shares of PDD, the conglomerate behind online shopping giant Pinduduo and retail app upstart Temu.

PDD posted record third-quarter results, beating investor expectations as sales jumped 94% to 68.8 billion yuan ($9.7 billion) from a year earlier, while profits soared 60% to nearly 16.7 billion yuan ($2.3 billion).

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PDD has surpassed Alibaba in market capitalization. (Photo: Caixin)

That sent PDD shares soaring, lifting its market value to $193 billion (as of press time). Alibaba’s market cap, meanwhile, fell below $190 billion. This is the first time PDD has surpassed its rival Alibaba, according to data provider Refinitiv Eikon.

Alibaba employees are feeling it the most. In a post on the company's internal forum, one person mentioned that PDD was closing in on Alibaba and that Jack Ma was having second thoughts, according to CNN.

“Please give us constructive comments and suggestions, especially progressive ideas. I believe everyone at Alibaba is watching and listening,” the employee wrote.

Jack Ma congratulated PDD on its recent strong performance and added that “the era of AI e-commerce has just begun. It is both an opportunity and a challenge for all.”

“I firmly believe that Alibaba will change. Everyone has been great, but those who can innovate for tomorrow and are willing to sacrifice and pay any price will be respected. Let’s return to our mission and vision, Alibaba people, and move forward,” the Alibaba founder wrote.

Jack Ma founded Alibaba in 1999 and stepped down as chairman in 2019, about a year before it fell into trouble for criticizing Chinese financial and banking regulators.

The businessman has kept a low profile since then, although he remains a shareholder in Alibaba. The company’s shares have tumbled 15% this year amid concerns about restructuring, leadership changes and fierce competition.

PDD, on the other hand, enjoyed a bumper year, with Chairman and Co-CEO Chen Lei saying the results were partly due to China's economic recovery.

PDD was founded in 2015 and recently attracted international attention when it launched Temu – a low-cost online supermarket that is extremely popular in the US and Australia. Temu sells everything from household goods to clothing and electronics.

(According to CNN)

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