On November 29, Meituan's stock price suddenly crashed**, falling more than 12% and hitting a new low since April 2020. This situation has aroused widespread concern and concern in the market. And the biggest reason for the stock price** is Meituan's latest earnings report. According to the report, Meituan's revenue in the third quarter increased by 221%, net profit increased by 1953%。While the data shows that the company's performance is still growing, the pace of growth has slowed slightly compared to market expectations. In addition, Meituan's new business growth has also slowed sharply, growing by only 152%。These data have raised concerns about Meituan's future growth prospects, resulting in:InvestmentsThey have been selling, which leads to a ** share price.
1.Douyin's onslaught: Douyin, one of its most ferocious competitors, is aggressively attacking Meituan's local lifestyle sector. According to the financial report data, Douyin's local life business accounted for about 40% of Meituan's write-off amount. Especially in the field of catering, Douyin and Meituan are in fierce competition. In response to Douyin's offensive, Meituan had to reduce its annual fees and renegotiate commission rates, which undoubtedly sacrificed a lot of profits.
2.Changes in the market environment: Against the backdrop of a weaker macroeconomic environment, more and more consumers are downgrading their consumption and switching to lower-priced products. In response to this change, Meituan had to burn cash and aggressively expand its low-cost takeaway product, Pinhaofan. This increased the number of orders to a certain extent, but it also led to a decline in profits.
3.Losses in new business: Although Meituan's new business has grown to some extent, it still faces a significant risk of loss. Due to the high cost of fulfillment and the high rate of fresh food loss, it is difficult for the new business to achieve profitability in the short term, which makes it difficult for the new business to achieve profitability in the short termInvestmentsThere are doubts about the potential for future growth.
1.Strengthening Core Fundamentals: Despite market skepticism about Meituan's new business growth, core fundamentals remain solid. Meituan will continue to strengthen the operation and development of its core business and improve the user experience to stabilize existing users and attract more new users.
2.Continued investment in new businesses: Despite the current heavy losses in new businesses, Meituan will continue to invest in new businesses. In particular, businesses with profit potential, such as flash sales, Meituan Grocery and Meituan Preferred, could become important for the company's growth in the future**.
3.Improving efficiency and profitability: Meituan management said it is developing new, revised strategies to improve the operations of new businesses to enhance efficiency and profitability. They believe that through more time andInvestmentsinvestment, the new business will gradually grow and achieve profitability.
4.Dealing with competitive challenges: Faced with fierce competition from competitors such as Douyin, Meituan needs to constantly adjust its strategy and use its own strengths to withstand the onslaught of competition. This may involve adjustments**, improving the quality of services, and developing new products and services.
Despite the challenges and pressures faced by Meituan, it still has a high competitive advantage due to its leading position in the local lifestyle sector and its strong user base. As long as Meituan is able to flexibly respond to market changes and continuously improve its business operations and management, it is still possible for Meituan to achieve long-term stable growth. However,InvestmentsIt is still necessary to pay close attention to Meituan's performance and changes in the market environment.