The market value of hundreds of billions of dollars evaporates! The price of JD Meituan’s “Take-out war”

Source: Wall Street News

The "takeout war" caused the market value of 100 billion yuan to evaporate, and Meituan and JD.com were trapped in a quagmire price battle.

According to statistics, since the stage highs in October last year, the stock prices of Meituan and JD.com have both fallen by more than 30%, becoming one of the worst-performing stocks in the Hang Seng Technology Index, with a total market value shrinking by about US$100 billion.

It is reported that under the impact of DeepSeek, market funds are being transferred to companies with stronger AI capabilities on a large scale, which puts additional pressure on traditional e-commerce platforms such as Meituan and JD.com, and puts pressure on the stock prices of platforms that lack obvious AI advantages.

In addition, JD.com has adopted an aggressive subsidy strategy to promote its food delivery platform, and this "money-burning" model has exacerbated market concerns about the long-term profitability of technology giants.

Analysis points out that this radical market competition not only erodes short-term profits, but is also likely to trigger a continuous price war, further aggravating industry uncertainty.

After the latest financial report was released on Tuesday, Meituan's stock price fell by more than 5%, with a cumulative decline of 15% this year.

At the earnings call held last night, regarding the impact of JD's 10 billion subsidies on Meituan's takeaway business, Meituan CEO Wang Xing responded that Meituan "will win the competition at any cost."

This means that fierce competition among food delivery platforms may continue. Wang Xing said that Meituan will continue to defend its market share and cannot provide accurate financial guidance for the second quarter and the rest of the year, but the year-on-year growth rate of core local business revenue in the second quarter will slow down from the level in the first quarter, and the operating profit of core local business will decline significantly year-on-year in the second quarter.

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