• 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

Europe bulletin: Zelensky calls for more weapons, Russia...

October 25, 2025

Nvidia stock edges higher amid semiconductor sector rally...

October 25, 2025

AMD stock climbs 7%, breaching $400B market cap...

October 25, 2025

US digest: Jeffries endorses Mamdani, Ford’s stock surge,...

October 25, 2025

Trump seeks Asia mineral deals to ramp up...

October 25, 2025

Lucy Powell elected deputy leader of the UK’s...

October 25, 2025

Disney warns YouTube TV subscribers of potential blackout...

October 24, 2025

Top catalysts for the CAC 40 index next...

October 24, 2025

European stocks open higher, buoyed by a wave...

October 24, 2025

NatWest share price forecast as its earnings jump:...

October 24, 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

  • Europe bulletin: Zelensky calls for more weapons, Russia warns against EU sanctions

    October 25, 2025
  • Nvidia stock edges higher amid semiconductor sector rally and AI boom

    October 25, 2025
  • AMD stock climbs 7%, breaching $400B market cap amid chip sector rally

    October 25, 2025
  • US digest: Jeffries endorses Mamdani, Ford’s stock surge, US sanctions Colombian president

    October 25, 2025
  • Trump seeks Asia mineral deals to ramp up pressure on China’s Xi: report

    October 25, 2025
  • Lucy Powell elected deputy leader of the UK’s Labour Party

    October 25, 2025

Editors’ Picks

  • 1

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

    February 21, 2025
  • 2

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

    March 26, 2025
  • 3

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

    February 23, 2025
  • 4

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

    February 20, 2025
  • 5

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

    March 1, 2025
  • 6

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

    February 25, 2025
  • 7

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

    March 1, 2025

Categories

  • Economy (3,000)
  • Editor's Pick (295)
  • Investing (185)
  • Stock (2,048)
  • 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

Asia-Pacific markets mixed as Japan’s bond yield...

March 10, 2025

Asian markets close: Nikkei flat as Japan’s...

May 17, 2025

Top reasons why Alibaba stock price is...

March 31, 2025