YMM Should I Buy
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Full Truck Alliance Co Ltd (YMM) is not a strong buy at the moment for a beginner, long-term investor. While the company demonstrates operational resilience and maintains a strong cash position, its recent financial performance shows declining net income, EPS, and gross margin. Technical indicators suggest a bearish trend, and the absence of strong proprietary trading signals further diminishes the case for immediate investment. A hold position is recommended until clearer growth signals or a more favorable entry point emerges.
The stock is exhibiting bearish trends with SMA_200 > SMA_20 > SMA_5. RSI is neutral at 37.086, and MACD is positive but contracting. Key support and resistance levels indicate the stock is trading near support (S1: 9.512). Overall, the technical outlook is weak.
North of South Capital recently increased its stake in YMM, indicating confidence in the company's long-term prospects.
The company reported a 10.8% YoY increase in Q3 revenue, demonstrating operational resilience.
Strong cash position with $4.4 billion in cash and investments.
Declining net income (-18.05% YoY), EPS (-20.00% YoY), and gross margin (-5.04% YoY) in Q3
Analysts have lowered price targets, citing deceleration in transaction service revenue growth and seasonal impacts.
Bearish technical indicators and lack of strong trading signals.
In Q3 2025, revenue increased by 10.78% YoY to $471.7 million. However, net income dropped by 18.05% YoY, EPS declined by 20.00%, and gross margin fell by 5.04%. These trends indicate profitability challenges despite revenue growth.
Analysts have lowered price targets (Barclays: $12, Jefferies: $13, Morgan Stanley: $14) but maintain mixed ratings (Equal Weight, Buy, Overweight). While Q3 results showed a revenue beat, concerns about slower growth in Q4 and higher tax expenses weigh on sentiment.
