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On November 28, 2023, Chinese online discount retailer PDD released its third-quarter earnings report. The report showed that PDD's revenue for the quarter was 68.8 billion yuan, a year-over-year increase of 93.9%. Pdd also reported a net profit of 15.5 billion yuan, a year-over-year increase of 22.6%.

The release of PDD's earnings report sent its stock price soaring by 18% on the opening bell. As of the close of trading on November 28, Pdd's stock price was 139 USD, up 18.08%. Pdd's market capitalization was 184.67 billion USD.

Alibaba, a leading e-commerce company in China, closed at 76.74 USD on November 28, down 1.02%. Alibaba's market capitalization was 195.45 billion USD. The difference between the two companies' market capitalizations was only 107.7 billion USD.

Alibaba also released its third-quarter earnings report on November 16, 2023. The report showed that Alibaba's revenue for the quarter was 224.79 billion yuan, a year-over-year increase of 9%. Alibaba's net profit for the quarter was 27.706 billion yuan, a year-over-year increase of 266.96 billion yuan. Alibaba's non-GAAP net profit for the quarter was 401.88 billion yuan, a year-over-year increase of 19%.

It is worth noting that three years ago, Alibaba's market capitalization was 860 billion USD, PDD's market capitalization was 108 billion USD, and JD.com's market capitalization was 120 billion USD.

PDD's earnings report and stock price performance sparked heated discussions in China. Some Alibaba employees posted on the company's internal forum to express their surprise and concern.

One employee wrote, "I can't sleep tonight. I can't believe it. PDD's market capitalization has reached 18.55 billion USD, only 80 billion USD less than ours. That's a huge surprise. PDD, once a small player, is now about to become the big brother. "

This post received a response from Jack Ma, the founder and former chairman of Alibaba. Ma wrote, "Please feel free to share your constructive opinions and suggestions, especially innovative ideas. I believe that Alibaba employees are all watching and listening. I am more confident that Alibaba will change and improve. All great companies are born in the winter. The AI e-commerce era has just begun. It is an opportunity and a challenge for everyone."

Ma also congratulated PDD on its past performance. He said, "Everyone has been successful at some point, but it is the ones who are willing to reform to be successful tomorrow and the day after tomorrow. Let's stay true to our mission and vision, Alibaba employees!"