11 Cheap NASDAQ Stocks to Buy According to Hedge Funds

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4. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E Ratio as of April 21: 7.48

Number of Hedge Fund Holders: 85

PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses. It operates Pinduoduo, which is an e-commerce platform, together with Temu, which is an online marketplace. It focuses on bringing businesses and people into the digital economy. Pinduoduo’s transaction services segment is a major driver of the company’s overall revenue.

In Q4 2024, revenue from transaction services reached RMB53.6 billion, which marked a 33% year-over-year increase. This segment accounted for 48.5% of the total Q4 2024 revenue, which itself grew by 24%. For the full year 2024, transaction services revenue totaled RMB195.9 billion, which was up 108%. This segment contributed 49.8% to the total 2024 revenue, which grew by 59%.

The growth in transaction services includes commissions and other fees generated from transactions on the platform. Pinduoduo’s total revenue costs increased in Q4 2024 by 36%, and for the full year by 68%. Initiatives such as the RMB10 billion fee reduction program and the high-quality merchant support program aim to enhance merchant efficiency and attract quality suppliers to drive transaction volume at Pinduoduo.

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