Hundred Billion Dollar Market Value Evaporated! The Cost of the "Takeout War" Between JD.com and Meituan
Since the peak in October last year, the stock prices of Meituan and JD.com in Hong Kong have both fallen by more than 30%, entering the ranks of the worst-performing constituents of the Hang Seng Tech Index, with the company's market value evaporating by $100 billion. Analysts believe that JD.com's "burning money" model in the food delivery business has intensified market concerns about the long-term profitability of tech giants
The "takeout war" has led to a evaporation of market value worth hundreds of billions, with Meituan and JD.com trapped in a price war.
According to statistics, since the peak in October last year, the stock prices of Meituan and JD.com in Hong Kong have both fallen by over 30%, entering the ranks of the worst-performing constituents of the Hang Seng Tech Index, with a total market value shrinkage of approximately $100 billion.
Reports indicate that under the impact of DeepSeek, market funds are massively shifting towards companies with stronger AI capabilities, putting additional pressure on traditional e-commerce platforms like Meituan and JD.com, causing stock prices of platforms lacking significant AI advantages to be under pressure.
In addition, JD.com has adopted an aggressive subsidy strategy to promote its food delivery platform, and this "burning money" model has intensified market concerns about the long-term profitability of tech giants.
Analysts point out that this aggressive market competition not only erodes short-term profits but may also trigger a prolonged price war, further exacerbating industry uncertainty.
After the latest financial report was released on Tuesday, Meituan's stock price fell by more than 5% at one point, with a cumulative decline of 15% for the year.
During the earnings call held last night, in response to the impact of JD.com's hundreds of billions in subsidies on Meituan's takeout business, Meituan CEO Wang Xing stated that Meituan "will spare no effort to win the competition."
This indicates that the fierce competition among takeout platforms may continue. Wang Xing mentioned that Meituan will continue to defend its market share and cannot provide accurate financial guidance for the second quarter and the remainder of the year, but the year-on-year growth rate of core local business revenue in the second quarter will slow from the level in the first quarter, and the operating profit of core local business will significantly decline year-on-year in the second quarter.
