10 Best NASDAQ Stocks to Buy According to Billionaires

8. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Funds: 85

Number of Billionaire Investors: 21

Value of Billionaire Holdings: $2,146,808,856

PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational e-commerce company focused on enhancing digital presence for local businesses. It is known for its major platforms including the Pinduoduo and Temu. Moreover, the company has built a vast network of logistics through brand partnerships and technology-driven engagement.

During the fiscal fourth quarter of 2024, the company grew its revenue by 24% year-over-year to reach RMB110.6 billion. Moreover, the operating profit also rose to RMB25.6 billion indicating a 14% increase. Management noted that they are focused on expanding their platform sustainability and are also improving their supply chain. Looking ahead, there are some headwinds for PDD Holdings Inc. (NASDAQ:PDD). On April 29, CNBC’s Gabrielle Fonrouge and Annie Palmer reported that Temu has started adding import charges to customer orders which range from 130% to 150%. This is due to the tariffs imposed by the United States on China. Despite this, analysts remain optimistic for growth as the average price target presets 46.90% upside from current levels. PDD Holdings Inc. (NASDAQ:PDD) is one of the best NASDAQ stocks to buy according to billionaires.

GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:

“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.

PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.

PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a more formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)