Meituan earnings exceeded expectations and fell 10%, will you buy the dip?

Ryan_Z0528
2023-11-29

China's top food delivery app $MEITUAN-W(03690)$ $MEITUAN(MPNGY)$ , posted a bigger-than-expected rise in third-quarter revenue. The food delivery giant reported June to September revenue of $10.69 billion - well up from last year, and above analyst forecasts.

But after earnings came out, the $MEITUAN(MPNGY)$ stock price fell by 10% and $MEITUAN-W(03690)$ in the Hong Kong stock market fell over 12%.

To be honest, the receivables exceeded expectations and fell sharply, which is really surprising.

Last week, I personally said that I would buy Meituan, optimistic about its revenue.

See Holding My BIDU and Expecting a Bargain Hunting of MEITUAN

However, many friends around me said that Meituan’s food delivery business is not as good as other apps, and some businesses are also being divided up by Douyin. The competitive landscape and personal cost advantages are not enough.

To be honest, many people bought Meituan at a low point on Tuesday, and I am still holding the position.

In the future, I hope it can go back up a bit.

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