China Tech Talk

75: Pinduoduo's free cash flow problem with James Hull

Free cash flow is cash a company can use for whatever they want. If Pinduoduo is free cash flow positive they’ll likely be able to continue their growth spend and get even larger. If its free cash flow negative, the growth plan will put too much strain on their cash position and, it will eventually fail. To say it simply: the stakes are high. This week…