5 Best Growth Stocks To Buy Now According To Billionaire Ray Dalio

4. Pinduoduo (NASDAQ:PDD)

1,094,888 shares of Pinduoduo (NASDAQ:PDD), the Chinese Internet giant, is the amount held by Bridgewater in its 13F portfolio on September 30, giving the firm a stake worth $81.2 million at the end of September. Not only Dalio has great expectations from PDD’s performance, as hedge fund sentiment towards the stock has been bullish since Q2, when the number of hedge fund positions increased by around 7% from the previous quarter.

Pinduoduo’s fast growth is indisputable, as the e-commerce channel registers a year-over-year revenue growth of about 89% for Q3, amassing 14.2 billion Chinese Yuan ($2.2 billion). Continuing its customer-centric approach, PDD launched in August a new service called Duo Duo Maicai, hoping to expand market share against its rivals. Nevertheless, Tao Value, an investment management firm that has held bullish positions in PDD for a long time, signals the challenges that the company might face. Here is that Tao Value had to say in its Q3 2020 investor letter:

“Pinduoduo (ticker: PDD) dragged 93 bps this quarter. Investors had high expectation on Pinduoduo coming into this quarter, yet the reported Q2 GMV & revenue fell short of such hype. The stock dropped 14% on the earnings day alone. On business side, management indicated its strategic shift to develop technology solutions for the vast, yet under-digitalized agriculture value chain in China. I think it is a difficult but meaningful problem to tackle.”

Ray Dalio of Bridgewater Associates