Pinduoduo ($PDD) is a big reason why Alibaba ($BABA) stock has struggled in recent years and is now a bigger company by market cap

Pinduoduo is an up-and-coming e-commerce company in China that competes with Alibaba. A lot of Alibaba's struggles is attributed to the CCP blackballing Jack Ma and the regulatory crackdown on tech in China, but Pinduoduo has carved out a legitimate market share in e-commerce from Alibaba. If fact, Pinduoduo is now the biggest e-commerce company in China by market cap (184B vs 183B) despite only being around for eight years, about a third of the time Alibaba has been operating.

Pinduoduo features interactive game-like shopping and rock-bottom prices through limited deals and flash sales which has created wide-spread addiction among shoppers. They are also behind the hit shopping app Temu in the US.

Of course Alibaba also has cloud computing services (Alibaba Cloud) and fintech (Ant Financial) so the two companies are not exactly the same.

https://www.bloomberg.com/news/articles/2023-12-11/temu-parent-pdd-surpassed-alibaba-market-cap-will-the-success-last?srnd=premium