Meituan: Volatility Incurred By Subsidy Battle Presents A Buying Opportunity
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Joann Fang91 FollowersFollow5ShareSavePlay(13min)CommentsSummaryMeituan remains the dominant Chinese on-demand delivery platform despite a Q3 loss driven by intensified subsidy competition with JD.com and Alibaba.MPNGY's fulfillment efficiency and integrated content-to-transaction ecosystem underpin its market leadership, with unmatched speed, reliability, and high AOV order dominance.Meituan's lower burn rate versus peers amid irrational competition and a 34.3% YTD share price decline present an attractive buying opportunity.Overseas expansion, notably in Hong Kong, demonstrates the transferability of Meituan's dispatching technology, with emerging markets as key targets for future growth. Robert Way/iStock Editorial via Getty Images Investment Thesis Meituan (MPNGY) is a “super app” that delivers almost everything in China. It recently released its 3Q25 earnings, recording an adjusted net loss of RMB16 billion, its first quarterly loss since 2Q22, as the price warThis article was written byJoann Fang91 FollowersFollowChina-focused equity writerAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You