Billionaire David Tepper’s Top 10 Stock Picks Heading into 2025

2. PDD Holdings Inc. (NASDAQ:PDD)

Appaloosa Management LP’s Stake Value: $714.65 Million

Number of Hedge Fund Holders: 78

PDD Holdings Inc. (NASDAQ:PDD) is an internet retail company that offers an e-commerce platform. It offers products in various categories, including agricultural produce, apparel, food and childcare products. It is also the parent of the discount marketplace Temu, an online marketplace that is challenging Amazon and Alibaba.

Founded nine years ago, PDD Holdings Inc. (NASDAQ:PDD) has grown to become a force to reckon with in the Chinese e-commerce sector. It has become the third-largest e-commerce platform because it focuses on lower-income shoppers in lower-tier cities. The launch of a farm-to-table platform that allows farmers in China to connect with customers directly has also had a hand in its robust growth.

Taking Temu International has also had a hand in strengthening PDD Holdings Inc. (NASDAQ:PDD) prospects in internet retail. The platform is now one of the most popular, with 167 million active users worldwide. The expansion drive is expected to help PDD Holdings grow its revenue at a compound annual growth rate of 38% by 2026.

Despite stiff competition and challenging macroeconomics, PDD Holdings Inc. (NASDAQ:PDD) delivered solid third-quarter results on November 21, 2024. It logged revenues of $14.15 billion, up 44% year-over-year, as net income increased 61% to $3.59 billion. The better-than-expected results come from the company investing in its platform to attract more businesses and customers.

PDD Holdings Inc. (NASDAQ:PDD) is one of billionaire David Tepper’s top 10 stock picks heading into 2025. As the third largest e-commerce company by revenue, it isn’t being targeted and is in an antitrust violation, as with Alibaba.