Profit warning! Meituan expects a sharp reversal in its profit outlook
On the evening of February 13, Meituan issued a profit warning: the company expects to swing from profit to loss for the fiscal year 2025, w
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On the evening of February 13, Meituan issued a profit warning: the company expects to swing from profit to loss for the fiscal year 2025, with a net loss of approximately RMB 23.3 billion to RMB 24.3 billion for the full year, compared to a net profit of approximately RMB 35.808 billion in 2024, marking a sharp reversal of nearly RMB 60 billion in profitability. The announcement stated that despite ongoing adjustments to its operating strategy, the company anticipates the losses will continue into the first quarter of 2026 due to persistent competition. Following the news, Alibaba's pre-market shares fell slightly by over 1%. How do you perceive Meituan’s future trajectory? When would be an opportune time to enter?
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