Pinduoduo shares soar on debut

Online discounter's robust business model gains support from investors

The initial success of Chinese online discounter Pinduoduo Inc's Nasdaq debut suggested Wall Street's vote of confidence in its social-commerce business model, but the 3-year-old firm needs to watch out for issues ranging from counterfeits to portfolio limits that could drag on profitability in the long run, analysts said.

Shares of the Shanghai-based company rocketed by more than 40 percent on its first trading day on Thursday, putting its founder Colin Huang among the ranks of the world's billionaires at the age of 38.