Stocks were flat to start the day after concerns over higher interest rates dragged stocks lower in the previous session. Tech stocks led Monday’s rout, with the Nasdaq sliding 1.93% for its biggest one-day loss since November 9th. The S&P 500 and the Dow shed 1.79% and 1.4%, respectively.
Some Chinese stocks got a boost after Beijing announced it would ease its health restrictions and that negative tests would no longer be required to enter public areas, malls, or residential areas. With the worst of China’s restrictions seemingly in the rearview, it may be time to start looking at stocks from the group to add. Our recommendation for today is one of the top choices among Chinese stocks, with an over 90% buy rating on Wall Street.
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Founded in 2015, Pinduoduo (PDD) is one of the fastest-growing tech companies in the world. The agriculture-focused e-commerce platform directly connects more than 12 million farmers with distributors and consumers through its interactive shopping experience, allowing users to participate in group buying deals.
In 2017, the company ended its online direct sales model and transitioned to purely providing online marketplace services to third-party merchants across more categories. According to Pinduoduo‘s July 2018 prospectus, this change from a first-party to a third party-marked the start of explosive growth. From there, Duo Duo Live was launched in December 2019 as a live streaming feature available for merchants to better promote their wares. Duo Duo Grocery, a next-day, click-and-collect grocery service, was rolled out in August 2020 as a response to the changing consumer needs for buying groceries in the wake of the COVID-19 pandemic. Since its Feb 2021 peak, PDD’s share price is down more than 55%. The stock garners a solid Buy rating from the Wall Street pros offering recommendations and a median price target of $101.27, representing a 15% increase from Monday’s closing price.