5 Best Affordable Tech Stocks to Invest In Now

4. Pinduoduo Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 36

Share Price as of August 12, 2022: $49.62

Pinduoduo Inc. (NASDAQ:PDD) provides an electronic commerce platform and is headquartered in Shanghai, the People’s Republic of China. Its platform allows customers to buy a wide variety of products such as food and beverages, vegetables, health, cosmetics, and apparel.

China’s easing lockdowns make Pinduoduo Inc. (NASDAQ:PDD) a very attractive stock, and estimates peg it at trading at 20x of its GAAP operating profits. It has 700 million monthly active users on its platforms and allows unique features such as customers discussing products in groups before buying – and even buying collectively to reduce prices. Finally, the company wildly reversed its non-GAAP operating loss of $500 million last year to a profit of $580 million this year.

Goldman Sachs kept a $95 price target for Pinduoduo Inc. (NASDAQ:PDD) in July 2022, stating that the company has high penetration and active buyers. As the first quarter of this year ended, 36 of the 912 hedge funds polled by Insider Monkey had invested in the company.

Pinduoduo Inc. (NASDAQ:PDD)’s notable investor is Ray Dalio’s Bridgewater Associates which owns 4.9 million shares that are worth $297 million.

Tao Value mentioned the company in its Q4 2021 investor letter. Here is what the fund said:

“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue grow with such a team with strong culture.”