10 Best Undervalued Stocks to Buy According to Billionaires

2. PDD Holdings Inc. (NASDAQ:PDD)

Number of Billionaire Investors: 21; Holdings: $2.1 Billion

Number of Hedge Fund Holders: 85

Forward P/E: 9.5

PDD Holdings Inc. (NASDAQ:PDD) is a major Chinese e-commerce company, mainly recognized for its social commerce platform, Pinduoduo. The platform utilizes a unique group-buying model that encourages bulk purchases for discounts, establishing the company as a disruptive force in China’s online retail market. The company has also entered global markets through its international e-commerce platform, Temu.

Currently, PDD Holdings Inc. (NASDAQ:PDD) is facing challenges related to U.S. tariff scrutiny. As reported by Bloomberg in early February, logistics agents have instructed Chinese retailers on platforms like Temu to pay an additional 30% tariff after a recent hike in U.S. tariffs on imports from China and Hong Kong. Retailers have voiced concerns over potential delays in customs clearance, and a brief suspension by the US Postal Service on some inbound packages from China and Hong Kong has added to these worries. Additionally, the administration is tightening regulations on previously exempt packages, increasing the pressure on PDD.

Despite these short-term risks, PDD Holdings Inc. (NASDAQ:PDD) is actively investing in logistics and technology to enhance its operations. By focusing on supply chain efficiency, agricultural e-commerce, and AI-powered recommendation engines, the company is expanding its competitive edge. Its foray into international markets has opened new growth opportunities, ensuring long-term growth supported by increasing monetization potential.