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

Here’s why the Meituan share price is rising today

by July 21, 2025
by July 21, 2025

Meituan share price rose by over 2.75% on Monday to H$133.4, up from the year-to-date low of H$116.2. It has now crashed by nearly 40% from last year’s high of H$216. 

Why the Meituan share price rose

The Meituan stock price rose slightly on Monday morning as Chinese authorities moved to temper the ongoing price wars in the sector, which has led to low margins.

In a statement, the State Administration for Market Regulation (SAMR) said that it had summoned the three biggest players in the sector for a meeting to address the ongoing price wars. 

The meeting comes at a time when the Meituan share price has slowed following JD’s entry into the business. JD’s food and grocery delivery business started by offering substantial discounts to its customers as it sought to boost its market share in the industry. 

JD’s entry and continued price war has affected Meituan, Alibaba, which owns Ele.me, and many other smaller companies in the industry. These competitors have had to respond, with Ele.me launching its subsidies last month.

The same competition and price wars has happened in other countries, including the US, where Uber, Postmates, Grubhub, and DoorDash have fought for market share. These firms have recently slowed the price wars and are now becoming more profitable.

The same happened in India, where top companies like Zomato, Swiggy, Blinkit, and EatClub have been competing for market share. 

Meituan growth could be hit

The most recent results showed that Meituan’s business continued to grow. Its revenue jumped to RMB 86.55 billion in the first quarter, a 18% increase from what it made a year ago. 

Most of this revenue came from its delivery services, which made over RMB 21 billion last quarter. It also generated RMB 20 billion in commissions, while its online marketing services and other services generated RMB 10 billion and RMB 3.2 billion, respectively. 

Its operating profit jumped from RMB 5.2 billion to RMB 10.56 billion, but the management expects the competition to hurt its growth. Meituan still commands a 70% market share in China, has over 14.5 million merchants, and a well-established logistics infrastructure. 

Meituan has other advantages as well. It is boosting its non-food delivery services, which is known as Instantshopping, which is already gaining market share and handling millions of deliveries a quarter. 

Meituan is also growing internationally through its Keeta platform that is available in Brazil and Hong Kong.

Meituan stock price technical analysis

Meituan stock chart | Source: TradingView

The daily chart shows that the Meituan stock price has been in a downtrend in the past few months. It has moved from a high of H$216 in October to H$130 today.

The stock has formed a descending channel as concerns about JD’s competition rose. It remains below the 50-day and 200-day Exponential Moving Averages (EMA). 

The stock has moved below the 50% Fibonacci Retracement level, a sign that bears are in control. Therefore, the stock will likely remain under pressure in the near term, as traders wait for its earnings report, scheduled on August 21. 

The post Here’s why the Meituan share price is rising today appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Asian stocks were broadly higher: Hang Seng up 0.6%, Kospi surges 0.5%
next post
Can ChatGPT Exist Without Fossil Fuels? I Asked — Here’s What It Said

Related Posts

Cyberattack halts Asahi production, disrupts Japan’s beer supply

October 3, 2025

Europe markets open: Stoxx 600 rises 0.4%, extending...

October 3, 2025

Bitcoin ETFs see over $600M in inflows as...

October 3, 2025

Stockholm leads Europe in IPO activity with $6.8...

October 3, 2025

Indonesia suspends TikTok licence after data refusal during...

October 3, 2025

Why the Thai baht’s climb against US dollar...

October 3, 2025

OpenAI valuation hits $500 billion as employees sell...

October 2, 2025

Here’s why JPMorgan, Morningstar are bullish on Alibaba...

October 2, 2025

Europe markets open: Stoxx 600 jumps 0.6%, led...

October 2, 2025

Will the Tesco share price hit 500p as...

October 2, 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

  • What I Saw in Milei’s Argentina

    October 3, 2025
  • Tariffs Rest on Distrust of Citizens

    October 3, 2025
  • Cyberattack halts Asahi production, disrupts Japan’s beer supply

    October 3, 2025
  • Europe markets open: Stoxx 600 rises 0.4%, extending its record-setting rally

    October 3, 2025
  • Bitcoin ETFs see over $600M in inflows as BTC price nears $120K

    October 3, 2025
  • Stockholm leads Europe in IPO activity with $6.8 billion raised

    October 3, 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 (2,770)
  • Editor's Pick (279)
  • Investing (185)
  • Stock (1,885)
  • 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

Broadcom stock price has crashed: time to...

February 27, 2025

Can Espinosa’s turnaround plan revive Nissan’s falling...

May 15, 2025

Genmab to acquire Dutch biotech Merus in...

September 29, 2025