Meituan's Stock Falls 10% as Price War Threatens Quarterly Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
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Should l Buy ?
Source: SeekingAlpha
Meituan's Share Decline: Meituan shares fell nearly 10% after the company announced expected significant losses this quarter due to competition with Alibaba and JD.com.
Impact of Price War: The company attributed its profit decline in the June quarter to "irrational competition" in the food delivery market.
Revenue Growth vs. Profit Decline: Despite a revenue increase of 11.7% to RMB91.8 billion, operating profit for its local commerce segment dropped significantly to RMB3.7 billion.
Expansion Losses: The new initiatives segment reported an operating loss of RMB1.9 billion, largely due to costs associated with overseas expansion compared to the previous year.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
