PDD Holdings (NASDAQ: PDD), more commonly known as Pinduoduo, became one of China's hottest growth stocks after its public debut in 2018. The Chinese e-commerce company's shares have risen eight-fold from its IPO price of $18 to about $144 today, and it could still have room to run as it locks more shoppers into its ever-expanding ecosystem.

PDD initially carved out a defensible niche with its steep discounts on bulk purchases, and it capitalized on that growth by building an online grocery platform that directly connected farmers to consumers. It also expanded beyond its market of lower-income shoppers by luring higher-end brands to its marketplace.

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