MEITUAN-W fell too badly! How does the market view it?
First quarter profits exceeding expectations are just a smokescreen, is MEITUAN-W's underlying fundamentals not actually that good? Are large investors betting against options? Or is TENCENT's major shareholder selling off? Or is it simply a lack of market funds that can't sustain the market and can only lead to a crash?
Last week, MEITUAN-W handed in a super-expected quarterly report, but this week it did not have a beautiful start.
On Monday, May 29th, MEITUAN-W's stock price opened low and closed lower, eventually falling 8%, hitting a new low since the end of October last year.
The market was generally surprised by this, after all, MEITUAN-W's first-quarter performance was indeed good, not only completely turning losses into profits, but also having stable revenue. Why did the stock price come under such pressure?
From a fundamental perspective, Longbridge Dolphin Investment Research believes in a short comment that "profit exceeding expectations is only a smoke bomb", and the real problems exposed in this financial report are:
Competition erodes MEITUAN-W's medium- to long-term profit space, and MEITUAN-W still has no effective countermeasures against ByteDance;
There are also hidden worries in the core takeaway business. Based on the low base of last year, the growth rate of takeaway orders for the whole year this year can only slightly exceed 20%, and there may be doubts about the growth momentum of takeaway orders in the next few years.
Another Snowball netizen also believes that MEITUAN-W has two major problems: "competition" and "the growth effect of new businesses does not meet expectations."
At the trading level, there are market rumors that "many institutional investors dumped large stocks today because the deadline for the closed period of the fund has expired." Therefore, MEITUAN-W fell so brutally. After the institutional operation is over, MEITUAN-W is likely to rebound.
Of course, some people believe that "it is essentially a liquidity problem", and the lack of market funds has led to weak buying power, which directly caused the collapse.
In addition, some people also expressed that perhaps similar to the pressure of TENCENT's previous major shareholder reduction, Naspers, which holds HKD 40 billion worth of MEITUAN-W shares, may also be the protagonist of today's sell-off.