Chinese Billionaire Lei Zhang is Selling These 4 Tech Stocks in 2022

2. Pinduoduo Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders as of December 31: 34

Pinduoduo Inc. (NASDAQ:PDD) is a Chinese e-commerce platform that provides a wide variety of discretionary products. Hillhouse completely liquidated its position in Pinduoduo Inc. (NASDAQ:PDD) during Q1 2022. This is only the second quarter since Q2 2018, when the shares of Pinduoduo have not been part of Hillhouse Capital’s portfolio.

The analysts’ view on Pinduoduo Inc. (NASDAQ:PDD) stock contrasts with Zhang’s stance. In a note issued to investors on May 16, Andre Chang at JPMorgan double upgraded Pinduoduo Inc. (NASDAQ:PDD) stock from an Underweight to an Overweight rating with a target price of $55. The target price reflects a healthy upside potential of over 34.4% from the last closing price. The analyst highlighted that following the recent regulatory announcement by the Chinese government, the “significant uncertainties” related to the Chinese internet sector are out of the way.

In its Q4 2021 investor letter, Tao Value discussed its stance on Pinduoduo Inc. (NASDAQ:PDD). Here’s what it 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.”