10 Michael Burry Stocks with Huge Upside Potential

7. PDD Holdings Inc. (NASDAQ:PDD)

Scion Asset Management’s Q4 Stake: $7.2 million

Analyst Upside as of May 9: 27.60%

Number of Hedge Fund Holders: 85

PDD Holdings Inc. (NASDAQ:PDD) is a global commerce company that operates several businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform with a wide range of products, whereas Temu is an online marketplace that specializes in heavily discounted consumer goods.

PDD Holdings Inc. (NASDAQ:PDD) has begun implementing a strategic shift in its business strategy for Temu. The platform will now exclusively focus on goods offered by local American merchants, abandoning its previous approach of selling low-cost Chinese imports. PDD Holdings’ move to adopt a “local fulfillment” approach is expected to reduce the impact of tariffs on its operations, perhaps allowing the company to retain competitive pricing for its customers in the US.

On April 28, Citi reduced its price target for PDD Holdings Inc. (NASDAQ:PDD) from $150 to $127 while maintaining a Neutral rating. The firm anticipates the company to announce its first-quarter results by the end of May, but notes “several uncertainties.” Citi’s analyst believes that before new tariffs are implemented, there is a potential for a brief increase in US sales as customers rush to make purchases before the spike in prices. That said, Citi anticipates PDD’s share price to stay within a particular range until there is additional information about how the new tariffs will influence the company’s earnings.