15 Best and Cheap Stocks to Buy According to Billionaires

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2. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E Ratio: 9.94

No. of Billionaire Investors: 21

PDD Holdings Inc. (NASDAQ:PDD) is a leading Chinese e-commerce company, mainly recognized for its social commerce platform, Pinduoduo. PDD practices 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 is expanding its e-commerce platform, Temu, entering into global markets. On March 12, Temu collaborated with DigitBridge, an American digital commerce operations system, to support SMBs in expanding their sales channels.

At the moment, PDD is facing challenges related to U.S. tariff scrutiny. As reported by Bloomberg in early February, logistics agents have instructed Chinese retailer platforms such as Temu to pay an additional 30% tariff. The administration is tightening regulations on previously exempt packages, increasing the pressure on PDD.

Despite these short-term risks, PDD Holdings Inc. (NASDAQ:PDD) continues to invest in logistics and technology to improve its operations. To enhance its competitive edge, the company’s focus remains on supply chain efficiency, agricultural e-commerce, and AI-powered recommendation engines. The company’s expansion into global markets through Temu will be crucial to overcome tariff challenges in the U.S. In the third quarter of 2024, the company posted a 44% year-over-year growth in revenue to RMB 99.4 billion, driven by growth in online marketing and transaction services. This demonstrates PDD’s ability to grow driven by its strategic investments.

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