13 Most Profitable Growth Stocks to Buy Now

2. PDD Holdings Inc. (NASDAQ:PDD)

Net Profit in the latest fiscal year: $15.36 billion

Revenue CAGR last 5 years: 67.31%

Number of Hedge Fund Holders: 85

​PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses, including the Chinese e-commerce platform Pinduoduo and the international online marketplace Temu. The latter platform was launched in September 2022 and has rapidly expanded into markets such as the United States, offering a wide range of affordable products. PDD ranked first on our recent list of 10 Best Chinese Stocks to Buy According to Billionaires.

PDD Holdings Inc. (NASDAQ:PDD) delivered stable financial results in Q4 2024, with total revenues increasing 24% YoY, while full-year 2024 revenue grew 59%. The company’s non-GAAP operating profit reached RMB 28 billion for the quarter, compared to RMB 24.6 billion in the same quarter of 2023, though the operating profit margin decreased from 28% to 24%. However, management acknowledged that external uncertainties, intense competition, and increased investments in merchant support and platform ecosystem development may impact short-term revenue growth and create fluctuations in profitability. Despite short-term headwinds, PDD maintains its explosive growth momentum, which secures its second place on our list of the most profitable stocks to consider.

PDD Holdings Inc. (NASDAQ:PDD) has demonstrated a strong commitment to its high-quality development strategy through several major initiatives, including a CNY 10 billion fee reduction program, logistics support measures for remote regions, and high-quality merchant support programs. These initiatives have shown positive results, with the fee reduction program enabling over 10 million merchants to enhance operational efficiency and reduce costs, while logistics support measures drove double-digit order volume growth and extended free shipping to nearly 100 million consumers in remote regions. Looking ahead to 2025, PDD will continue to prioritize investments in platform ecosystem development, focusing on strengthening merchant rights protection, stepping up support for high-quality merchants, and broadening quality supply on the platforms.