To The Moon

• Tiger Introducing New Alpha is weekly hot tips for investing. Every week, we will share three articles on valuable area for investings.

• Just as China tech giant $MEITUAN-W(03690)$ , $DoorDash, Inc.(DASH)$ & $Booking Holdings(BKNG)$ demonstrated robust performance across multiple business segments.

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Market recap

Up: The $.SPX(.SPX)$ has reached a new all-time high, with Deutsche Bank projecting it could rise to 7,000 points. Last Friday (November 29), the S&P 500 index climbed by 0.56%, while the $.IXIC(.IXIC)$ gained 0.83%, marking new historical highs for both indices. In November, the $.SPX(.SPX)$ rose by 5.73%, and the Nasdaq increased by 6.21%. Deutsche Bank strategist Bankim Chadha anticipates that the $.SPX(.SPX)$ could reach 7,000 points by the end of next year, making this the most optimistic projection on Wall Street.

This week’s labor market data will significantly impact the Federal Reserve's plans for interest rate cuts. The crucial non-farm payroll report for November, to be released this Friday, is expected to show a steady increase in job creation, with the unemployment rate likely remaining low.

With $Tesla Motors(TSLA)$ FSD V13 released, an autonomous driving Ragnarök is one step closer. The latest version of Tesla's Full Self-Driving software, FSD V13.2, boasts a sixfold improvement in performance. It is expected that Tesla will launch its FSD features in China in the first quarter of 2025.

Fact check, Act. II

Stockprice didn't echo. China's largest food delivery firm $MEITUAN-W(03690)$, opens new tab posted a bigger-than-expected 22.4% rise in third-quarter revenue on Friday, defying sluggish Chinese consumption. However, when looking at the stock prices, the market has not responded positively to the impressive results. In terms of performance guidance, the management has cautioned about a decline in the growth rate of food delivery orders and hotel and travel services. Furthermore, as Keeta (Meituan' oversea arm) expands its operations in Saudi Arabia next year, losses from new business ventures are expected to increase.

Meituan's core business focuses on food delivery, hotels, and tourism, which is not without controversy. When discussing the strong growth of its local operations, Meituan attributes its success to "Pin Hao Fan," often referred to as the "TEMU version of the food delivery," where consumers can order meals for as low as USD1.3 or even less. However, issues surrounding social responsibility, food safety, and the competition for market share in the restaurant industry have sparked public debate about Meituan on Chinese social media.

If the company struggles to sustain high growth over the long term—a reality of business dynamics—the market will not hesitate to retreat when a turning point occurs. A recent example is Pinduoduo (PDD), whose stock plummeted by as much as 15.87% on the day of its Q3 earnings report after management signaled pessimism about future prospects.

Growth is King: $DoorDash, Inc.(DASH)$ vs $Booking Holdings(BKNG)$

$DoorDash, Inc.(DASH)$ dominates the US online food delivery market, with a market share of 65%.

• Investors have shown renewed confidence in the food delivery service, as the company continues to expand its market reach and capitalize on the sustained demand for home-delivered meals. The 52-week high serves as a testament to DoorDash's robust performance and its potential for continued growth in a competitive industry.

• DoorDash's Q3 earnings exceeded projections, with the company reporting a 19% increase in Gross Order Value (GOV). The company's revenue growth outpaced GOV growth, driven by advertising and efficient Dasher costs. DoorDash's international business is now gross profit positive, demonstrating improved contribution margins similar to those in the U.S.

• In addition to strong earnings, DoorDash has made strategic moves to enhance its market share. The firm recently announced a partnership with Lyft to boost the value of its DashPass subscription service. Furthermore, DoorDash acquired Tazz by Wolt, marking a significant step in expanding its market share in Europe. These recent developments underscore DoorDash's commitment to growth and operational efficiency.

The winner of battle among overseas OTAs goes to $Booking Holdings(BKNG)$ , the old-school.

• Booking, primarily focused on traditional accommodations, has gone head-to-head with Airbnb, which specializes in alternative lodging. Recently, Booking's market capitalization has surged to nearly $170 billion, while Airbnb's market value has dropped to $86 billion.

• Booking demonstrated robust performance across multiple business segments in the third quarter of 2024, driven by strategic initiatives and expanded service offerings. Its room night growth exceeded guidance by 3 percentage points, reaching 8% overall growth, primarily attributed to improved European market conditions beginning in August and an expanded booking window compared to 2023 expectations.

• Regional performance showed varied strength, with Asia leading at low double-digit growth and Europe achieving high single-digit increases.

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