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China's Meituan lost $82 billion in market cap amid rising competition, slowdown in food delivery business - TL;DR CNBC

China's Meituan lost $82 billion in market cap amid rising competition, slowdown in food delivery business

Publishing timestamp: 2024-01-09 21:34:01


Summary

Meituan, the Chinese food delivery leader, has lost $82 billion in market capitalization due to fears of increasing competition and a warning from management about a slowdown. Despite dominating the market, Meituan faces rising competition from Alibaba-owned Ele.me. Reports of a possible acquisition of Ele.me by ByteDance caused Meituan shares to drop. Meituan also warned of a slowdown in its food delivery business, leading to a further decline in its shares. Analysts remain optimistic about Meituan's outlook, but experts are skeptical of ByteDance's potential acquisition. The complex food delivery landscape makes it difficult for competitors to challenge Meituan's market leadership.


Sentiment: MIXED

Tickers: 3690-HKBABA

Keywords: business newsbreaking news: technologytechnologyalibaba group holding ltdasia economymeituanfood and drink

Source: https://www.cnbc.com/2024/01/10/meituan-lost-82-billion-in-market-cap-amid-china-economic-slowdown-.html


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