Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds

3. PDD Holdings Inc. (NASDAQ:PDD)

3-Year Average Revenue Growth: 58.60%

Number of Hedge Fund Holders: 96

PDD Holdings Inc. (NASDAQ:PDD) manages a diverse commerce portfolio, including Pinduoduo, a top Chinese e-commerce site, and Temu, an online global marketplace. The company plans to bring businesses and consumers into the digital economy through its platforms.

For Q4, which ended December 31, 2024, PDD Holdings Inc. (NASDAQ:PDD) posted $15.15 billion in total revenue. This marks a 24% jump year-over-year, driven mainly by increasing online marketing and transaction services. While operating profit grew 14% to $3.51 billion, net income for shareholders rose 18% to $3.76 billion. Full-year revenue shot up 59% to $53.96 billion, helped by a 108% rise in transaction service revenues. Net income surged 87% to $15.40 billion. These numbers demonstrate PDD’s robust performance across its digital commerce ecosystem.

However, PDD Holdings Inc. (NASDAQ:PDD) faces U.S. regulatory hurdles even with these strong finances. In early 2024, new tariffs on Chinese imports hit Temu, which in turn led to higher shipping costs. Tighter rules on formerly exempt packages made customs clearance harder, increasing stress on Temu’s U.S. operations.

Still, PDD Holdings Inc. (NASDAQ:PDD) is focusing on its global expansion with investments in platform innovation and supply chain productivity. Additionally, the company plans to improve its AI recommendations and logistics while the growing trend of value-based online shopping is expected to boost revenue, especially in global markets. Despite regulatory risks, PDD’s strong finances and strategic investments set it up for long-term growth, cementing its place among the best stocks in our stock portfolio.