Meituan's Stock Falls 10% as Price War Threatens Quarterly Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
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Source: SeekingAlpha
Meituan's Share Decline: Meituan shares fell nearly 10% after the company announced expected significant losses this quarter due to competition with Alibaba and JD.com.
Impact of Price War: The company attributed its profit decline in the June quarter to "irrational competition" in the food delivery market.
Revenue Growth vs. Profit Decline: Despite a revenue increase of 11.7% to RMB91.8 billion, operating profit for its local commerce segment dropped significantly to RMB3.7 billion.
Expansion Losses: The new initiatives segment reported an operating loss of RMB1.9 billion, largely due to costs associated with overseas expansion compared to the previous year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
