Meituan’s Stock Price Soars to 132.10 HKD, Achieving a Robust Increase of +2.09%

Meituan (3690)

132.10 HKD +2.70 (+2.09%) Volume: 86.27M

Meituan’s stock price sees a positive uptick, closing at 132.10 HKD with a 2.09% increase in today’s trading session, driven by a robust trading volume of 86.27M. However, the year-to-date performance reveals a decline of 14.77%, reflecting the volatility in the market.

Latest developments on Meituan

Meituan‘s stock price movements today are influenced by a series of key events, including the company’s 18% revenue jump in the first quarter, surpassing estimates despite intensifying competition in the food delivery sector. The ongoing war with JD.com has led to a $100 billion rout for both companies, signaling thinning out of tech giants in China. Meituan‘s strong Q1 2025 growth and solid sales performance, driven by global expansion efforts, have been overshadowed by warnings of ‘irrational’ competition in the food delivery market. The company’s CEO’s competitive pledge and vow to win the delivery war at all costs have further impacted Meituan‘s stock price, with the Hang Seng Index opening down nearly 5% amid the competition. Despite achieving solid sales growth and beating revenue expectations, Meituan faces profit pressure and volatility as the battle for market dominance heats up. With net profit up 46.2% in the first quarter, Meituan‘s stock price movements reflect the challenges and opportunities in the fiercely competitive food delivery industry.

Meituan on Smartkarma

Analysts on Smartkarma have been closely covering Meituan, with Ming Lu providing insights on the company’s 1Q25 performance. According to Lu, Meituan‘s total revenue grew by 18% YoY, with main businesses up by 20% YoY. The operating margin also saw a rise by 3.6 ppt YoY, and an EPS growth of 37% is expected in 2025, projecting a 48% upside for the stock.

Gaudenz Schneider, another analyst on Smartkarma, delved into options insights and analysis for Meituan. Schneider noted that the implied volatility has dropped to median levels, while realized volatility remains high. The term structure indicates little impact from upcoming earnings, with open interest spread over the next nine months. Various multi-leg option strategies have been observed, showcasing a dominance of long volatility and a 25% use of Diagonal Spreads in recent trading days.

A look at Meituan Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Meituan, a web-based shopping platform in China, has a mixed outlook based on the Smartkarma Smart Scores. While the company scores high in growth and resilience, indicating a positive long-term trajectory, it falls short in value and momentum. With a strong focus on expanding its services and maintaining stability, Meituan seems well-positioned to weather challenges and capitalize on growth opportunities in the market.

Despite facing some hurdles in terms of value and momentum, Meituan‘s emphasis on growth and resilience bodes well for its future prospects. As a leading provider of local consumer products and services in China, the company’s innovative approach to online shopping and voucher deals sets it apart in the competitive market. By leveraging its strengths and addressing areas of improvement, Meituan can continue to thrive and meet the evolving needs of its customers nationwide.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma