$PDD(PDD.US) and $MEITUAN(03690.HK) both saw modest gains, with the magnitude being very close.
Their main battlefields have long overlapped—local services, instant retail, and low-price supply. The marginal returns on subsidy investments are declining. Previously, the market was concerned about who was burning cash; now the narrative is shifting to how much fulfillment and customer acquisition costs are saved through AI-driven efficiency.
The recent recovery in Hong Kong's internet sector has lasted over a month, and valuations are no longer cheap. Will we continue to assign a premium based on the new narrative of AI monetization, or wait for the interim report to validate the efficiency gains? 🤔
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