The &#34;takeout war&#34; has led to a evaporation of market value worth hundreds of billions, with Meituan and JD.com trapped in a price war.
According to statistics, since the peak in October last year, the stock prices of Meituan and JD.com in Hong Kong have both fallen by over 30%, entering the ranks of the worst-performing constituents of the Hang Seng Tech Index, with a total market value shrinkage of approximately $100 billion.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/d302c059-af6e-4478-a626-869c607685c6.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/d302c059-af6e-4478-a626-869c607685c6.png"/>
Reports indicate that under the impact of DeepSeek, market funds are massively shifting towards companies with stronger AI capabilities, putting additional pressure on traditional e-commerce platforms like Meituan and JD.com, causing stock prices of platforms lacking significant AI advantages to be under pressure.
In addition, JD.com has adopted an aggressive subsidy strategy to promote its food delivery platform, and this &#34;burning money&#34; model has intensified market concerns about the long-term profitability of tech giants.
Analysts point out that this aggressive market competition not only erodes short-term profits but may also trigger a prolonged price war, further exacerbating industry uncertainty.
After the latest financial report was released on Tuesday, Meituan's stock price fell by more than 5% at one point, with a cumulative decline of 15% for the year.
During the earnings call held last night, in response to the impact of JD.com's hundreds of billions in subsidies on Meituan's takeout business, Meituan CEO Wang Xing stated that Meituan &#34;will spare no effort to win the competition.&#34;
This indicates that the fierce competition among takeout platforms may continue. Wang Xing mentioned that Meituan will continue to defend its market share and cannot provide accurate financial guidance for the second quarter and the remainder of the year, but the year-on-year growth rate of core local business revenue in the second quarter will slow from the level in the first quarter, and the operating profit of core local business will significantly decline year-on-year in the second quarter.

Meituan will announce its first quarter 2025 results after the Hong Kong stock market closes on May 26. According to analysts' expectations, Meituan's revenue in Q1 2025 is expected to increase by 17% year-on-year to 85.44 billion yuan; adjusted net profit is expected to increase by 30% year-on-year to 9.73 billion yuan; net earnings per share are expected to be 1.39 yuan, a year-on-year increase of 61%.

Recently, a total of 40 analysts have rated Meituan-W, of which 38 analysts have given a "buy" rating or above, with an average target price of HK$199.15.

Meituan will announce its first quarter 2025 results after the Hong Kong stock market closes on May 26. According to analysts' expectations, Meituan's revenue in Q1 2025 is expected to increase by 17% year-on-year to 85.44 billion yuan; adjusted net profit is expected to increase by 30% year-on-year to 9.73 billion yuan; net earnings per share are expected to be 1.39 yuan, a year-on-year increase of 61%. Recently, a total of 40 analysts have rated Meituan-W, of which 38 analysts have given a "buy" rating or above, with an average target price of HK$199.15.

Meituan earnings , understand it at a glance!

MPNGY

03690

09618

Since the peak in October last year, the stock prices of Meituan and JD.com in Hong Kong have both fallen by more than 30%, entering the ranks of the worst-performing constituents of the Hang Seng Tech Index, with the company's market value evaporating by $100 billion. Analysts believe that JD.com's "burning money" model in the food delivery business has intensified market concerns about the long-term profitability of tech giants

- The competition in the food delivery market has led to a significant decline in the stock prices of Meituan and JD.com, with a combined market value loss of approximately $100 billion since last October.  
- The shift of market funds towards companies with stronger AI capabilities has increased pressure on traditional e-commerce platforms like Meituan and JD.com, exacerbated by JD's aggressive subsidy strategy.  
- Meituan's CEO stated that the company will fiercely compete to maintain its market share, despite the challenges and a projected decline in core local business profits for the second quarter.

Wallstreetcn

Hundred Billion Dollar Market Value Evaporated! The Cost of the "Takeout War" Between JD.com and Meituan