• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Meituan share price has crashed, and JD.com is partly to blame

by May 27, 2025
by May 27, 2025

Meituan share price has continued falling in Hong Kong this month as concerns about competition in China’s food delivery industry continued. After peaking at H$217 in October last year, it has plunged by over 40% to the current $130, and is hovering at the lowest level since September. 

Why Meituan share price is falling

Meituan, the biggest food delivery company in China, has plunged in the past few months for three main reasons.

First, there are concerns about the soaring competition in China, where firms like Alibaba and JD are also large players. Alibaba owns Ele.me, which has a growing market share in the food and grocery delivery industries. 

JD.com has become the biggest headache for Meituan as it focuses on a cash-burning approach to gain market share for the JD Takeaway service it launched in February. It announced a $1.4 billion discount to woo customers, waived fees for some restaurant chains, and started a journey to hire over 100,000 delivery riders. 

This strategy aims to benefit the two sides of the pendulum. Restaurants can get more money, while customers receive substantial discounts. As a result, analysts at JPMorgan believe that JD has taken some market share from Meituan, which controls about 75% of the market share. 

On the positive side, analysts believe that JD’s strategy will not work out in the long term because of the substantial losses it will incur. 

Second, Meituan’s share price has crashed as investors have mostly moved to companies that have an AI element in their operations. China’s role in the AI race became more pronounced earlier this year when DeepSeek launched its application and AI model.

Third, the stock dropped after Beijing urged companies to lower online fees. The main regulator said that firms should have reasonable fees that takes into consideration to customers and merchants. 

Is it safe to buy the dip?

The situation is not going well for Meituan as it faces major challenges. However, the company has fended off competition in the past and thrived.

Most importantly, the management has expanded in other areas, including groceries and electronics, where JD has a substantial market share. 

Also, Meituan has invested heavily on the Keeta application, which is available in places like Hong Kong, Saudi Arabia, and the United Arab Emirates. The company sees these as rich places where it can grow as it faces stiff competition at home.

This week’s results showed that Meituan’s revenue rose by 18% to RMB86.6 billion as its core business achieved an operating profit of RMB 13.5 billion. 

The data also showed that revenue of the new initiatives division rose by 19.2% to RMB 22.2 billion as it narrowed its operating loss by 17.5%

Meituan share price analysis

Meituan stock price chart | Source: TradingView

The daily chart shows that the Meituan stock price has retreated in the past few months, moving from $217 in October to H$129 today. It has dropped below the 50% Fibonacci Retracement level and the key support level at H$133.6.

The stock has formed a death cross as the 200-day and 50-day WMA crossed each other in April. It has also formed a descending triangle pattern.

Therefore, the path of least resistance is bearish, with the next target being at H$100, down by 22.50% from the current level. It will then bounce back later this year or in 2026 as the price war continues and its international growth continues. 

The post Meituan share price has crashed, and JD.com is partly to blame appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Can the US Steel-Nippon deal really deliver 70,000 jobs as Trump claims?
next post
Top reasons to buy Miniso stock on the post-earnings decline

Related Posts

Asian markets open: Nikkei hits another record high,...

October 7, 2025

Top reasons why the Topix and Nikkei 225...

October 7, 2025

Goldman Sachs boosts 2026 gold price forecast to...

October 7, 2025

Beijing intensifies oil stockpiling amid global supply and...

October 7, 2025

Trump’s new 25% truck tariff targets imports from...

October 7, 2025

CAC 40 Index outlook: Understanding the decline and...

October 7, 2025

DAX Index analysis: Why German stocks are rising...

October 7, 2025

Europe markets open: Stoxx 600 flat, CAC 40...

October 7, 2025

LG India’s $1.3B share sale highlights record IPO...

October 7, 2025

Trilogy Metals shares soar over 200% as White...

October 7, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The OECD’s Warning to America: Economic Growth Is Slipping

    October 7, 2025
  • Semiconductor Giants with Tech-Industrial Ambitions

    October 7, 2025
  • Will Bitcoin Strengthen or Weaken US Dollar Dominance?

    October 7, 2025
  • Asian markets open: Nikkei hits another record high, Sensex up 140 pts

    October 7, 2025
  • Top reasons why the Topix and Nikkei 225 indices are soaring

    October 7, 2025
  • Goldman Sachs boosts 2026 gold price forecast to $4,900 amid strong demand

    October 7, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,804)
  • Editor's Pick (280)
  • Investing (185)
  • Stock (1,914)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

EVgo stock price is soaring: Can it...

May 26, 2025

Coal-fired power declines as India leverages inventories

August 6, 2025

Why India’s steel industry faces pressure from...

March 31, 2025