5 Best Volatile Stocks to Buy

2. Pinduoduo Inc. (NASDAQ: PDD)

Number of Hedge Fund Holders: 54   

Pinduoduo Inc. (NASDAQ: PDD) is a Cinese technology firm that focuses on agriculture-related products. It was founded in 2015 and is ranked second on our list of 10 best volatile stocks to buy. The company has created an interactive platform that links farmers to distributors and consumers directly. The firm also sells electronic appliances, furniture and household goods, cosmetics and other personal care items through the platform. Pinduoduo stock has returned more than 78% to investors in the past year. 

On March 17, Pinduoduo Inc. (NASDAQ: PDD) became the largest online marketplace in China after reporting a 164% year-on-year revenue growth in the fourth quarter of 2020 driven by pandemic sales. Total active users on the platform were 788 million in 2020, up more than 50% compared to the previous year. 

At the end of the fourth quarter of 2020, 54 hedge funds in the database of Insider Monkey held stakes worth $10.5 billion in the firm, up from 34 in the preceding quarter worth $4.3 billion. 

In its Q1 2021 investor letter, Tao Value, an investment management firm,, highlighted a few stocks and Pinduoduo Inc. (NASDAQ: PDD) was one of them. Here is what the fund said:

“Pinduoduo reported a strong quarter, reporting MAU of 720 million, now surpassing Taobao. However, it was overshadowed by a bigger news on Colin Huang resigning from Board and completely disassociating himself from PDD’s management & operation. Huang explained in his letter to shareholders that he would start fundamental research initiatives in food science. Although not entirely shocked (as he already stepped down from CEO July 2020), I am surprised by the fast pace of such transition. I remain confident in the organization and the culture Huang built but will monitor it closely.”