Dingdong (Cayman) Ltd. (DDL), an e-commerce company, closed Tuesday’s regular session at $6.8 after rocketing 46.27% during the day. In the premarket trading session, DDL was trading at $7.35 after gaining an increase of 7.14 percentage points at the last check.
Q4 2021 Results
The most recent release from DDL was Q4 2021 financial results, announced on the 15th of February. In the fourth quarter, GMV saw an increase of 59.6% on a year-over-year basis to $942.2 million. The total revenues for the quarter saw an increase of 72% on a year-over-year basis to $860.5 million. The total number of orders fulfilled by the company during the quarter was 100.1 million, an increase of 63.1% on a year-over-year basis.
What’s Cooking in Ecommerce Sector?
Recent years have seen the boom of eCommerce stocks at an unprecedented speed. The pandemic has proven to be a major catalyst behind this trend, however, apart from that factor; the rise of eCommerce was always on the cards since the internet was invented. During the year 2021, the eCommerce sector saw record sales of $7.3 trillion, and is expected that they would grow to over $7.3 trillion in 2025.
DDL Under Scrutiny
In recent days, DDL has remained under scrutiny from Haidian Market Supervision Bureau in China, owing to food safety concerns. They included the selling of dead fish and recycling expired vegetables. The local market ordered the company to fulfill the food-related responsibilities, upon which the company apologized to the concerned departments. The whole fiasco saw a wave of criticism from the general public and concerned departments, while also having an impact on the stock price.
In the last couple of days, DDL has seen a monumental increase. Investors are hoping that Chinese authorities are looking to alter the rules of confidentiality relating to offshore listings. This in turn could prove to be a major step toward resolving the audit-related disputes between US and China, ultimately impacting DDL in the long run. In the short term, however, the stock is expected to show volatility as US-China relations remain grim.