BlackRock’s Latest Report on China and 5 Stocks to Watch

4. Pinduoduo Inc. (NASDAQ:PDD)

BlackRock’s Stake Value: $847.61 million

Number of Hedge Fund Holders: 34

Pinduoduo Inc. (NASDAQ:PDD) operates a mobile application-based e-commerce platform which offers a range of consumer products throughout China. BlackRock held 21.13 million shares of the firm at a value of $847.6 million, representing 0.02% of its total portfolio as of the end of the first quarter of 2022. At the close of Q1 2022, Bridgewater Associates was the leading shareholder of Pinduoduo Inc. (NASDAQ:PDD), with 4.93 million shares valued at $198 million.

On May 16, JPMorgan analyst Andre Chang double upgraded Pinduoduo Inc. (NASDAQ:PDD) to ‘Overweight’ from ‘Underweight’, and increased the price target to $55 from $27. Chang noted that the uncertainties faced by the Chinese internet sector were abating on the back of news that regulators are loosening oversight policies in response to slowing economic growth. In April, analysts from 86 Research and Goldman Sachs both gave Pinduoduo Inc. (NASDAQ:PDD) ‘Buy’ ratings.

Investors reduced their overall holdings in Pinduoduo Inc. (NASDAQ:PDD) at the close of the fourth quarter, where 34 hedge funds reported owning the company shares, as compared to 49 hedge funds in the preceding quarter.

Investment firm Tao Value mentioned many stocks in its Q4 2021 investor letter, and Pinduoduo Inc. (NASDAQ:PDD) was one of them. 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.”