Ray Dalio’s Top 10 Growth Stock Picks with 30+% Revenue Growth

2. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Investors  in Q1 2024: 76

1 Yr Revenue Growth: 90%

Bridgewater Associates’ Q1 2024 Stake: $179 million

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese eCommerce company that has managed to establish itself as a formidable player in an industry dominated by the eCommerce giant Alibaba. This is because of its bulk buying model, which enables buyers to team up, increasing their buying power, and getting lower prices for their products. This model has also made PDD Holdings Inc. (NASDAQ:PDD) one of the fastest growing companies in China, and that too in the cyclical eCommerce industry which typically suffers in a slow economy. Additionally, PDD Holdings Inc. (NASDAQ:PDD) is also using its Chinese success to position itself for the global market through its Temu platform. Through Temu, it hopes to use its established partners with Chinese merchants to deliver low cost products to the Western market. However, Temu has suffered from consumer complaints, and the EU consumer protection group has lodged a complaint against it which alleges that Temu has failed to protect customers. Additionally, PDD Holdings Inc. (NASDAQ:PDD) could also face headwinds through Western sanctions against China and data collection concerns.

On quality complaints, here’s what PDD Holdings Inc. (NASDAQ:PDD)’s management had to say during the Q1 2024 earnings call:

“As commerce integrates with digital technology at a record pace, consumers and regulators are holding e-commerce platforms accountable for higher standards and we are taking the initiative to build an industry-leading compliance program and to leverage our technology capabilities to empower SME businesses with our compliance know-how. This is to foster a healthy environment that attracts quality merchants that are willing to play by the rules and drive out bad actors thereby creating a positive feedback loop. When it comes to consumer well-being and economic interest, we always stand behind the former. We are focused on building long-lasting trust with our consumers and not on short-term gains. We also adopt a similar long-term orientation in other aspects of our business.”