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Meituan Profit Soars as Revenue Beats Estimates Despite Rising Competition

Hey friends,

Let’s talk about something that’s been buzzing in the markets lately—Meituan’s blowout earnings report. You know how rare it is for a company to thrive in the middle of rising competition and economic uncertainty. But that’s exactly what Meituan just did. And if you’re serious about understanding what makes certain companies shine, even when the odds are against them, this is a story worth paying attention to.

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So What Happened?

Meituan just reported earnings that crushed expectations. Their net profit nearly doubled year-over-year, hitting 10.06 billion yuan (about $1.4 billion) in the first quarter of 2025. On top of that, revenue jumped 18%, reaching 86.56 billion yuan. These numbers didn’t just beat estimates—they blew them out of the water.

But here’s the catch: Even with these stellar results, the stock still dropped. Why? Let’s dig deeper.

Strong Core Business

Most of Meituan’s money still comes from what it does best—local services. This includes food delivery, in-store dining deals, and hotel bookings. Revenue from this core business segment also rose 18% compared to the same time last year.

That tells us two things:

1. Consumers are still spending.

2. Meituan’s platform remains sticky, meaning people keep coming back to use it.

When people trust a brand and keep using it even when they have other choices, that’s powerful.

What’s Fueling the Growth?

Part of Meituan’s success comes from its massive logistics network. They’ve built one of the most efficient delivery systems in China. Whether it’s noodles, bubble tea, or late-night groceries, Meituan gets it to your door fast.

Plus, they’ve gotten smarter. AI and big data help them match riders to orders more efficiently, cutting costs and saving time.

But… There’s Competition

Let’s not ignore the elephant in the room: JD.com and Alibaba aren’t sitting still.

• JD.com plans to hire 100,000 delivery riders to grow its own food delivery arm.

• Alibaba is trying to reinvigorate Ele.me, its food delivery unit, by offering more incentives and discounts.

Meituan has the first-mover advantage, but it needs to keep innovating to stay ahead. The battle for local services in China is heating up.

Going Global: A Bold Move

One of the smartest things Meituan is doing? Expanding internationally.

They’ve already launched in Hong Kong and Saudi Arabia. Now, they’re putting $1 billion into Brazil with their new food delivery brand, Keeta. That’s a bold play, but it makes sense.

China’s domestic market is competitive and slowing a bit. Going global opens up new sources of growth.

Regulatory Headwinds Still Exist

Let’s not forget about regulation. China’s government is still keeping a close eye on tech companies. New guidelines are being drafted around platform fees and how much companies like Meituan can charge restaurants.

This could impact profit margins. It’s one of the reasons investors are a bit hesitant, even when earnings are strong.

But so far, Meituan has been good at adapting to rule changes.

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Why Did the Stock Drop Then?

Great question. Even with the strong earnings, Meituan’s stock fell as much as 6.4%. Here’s why I think that happened:

• High expectations were already baked into the price.

• Macro uncertainty in China is still a concern.

• Competition news from JD.com spooked some short-term investors.

Sometimes, great news just isn’t enough when the market is nervous.

Should You Buy Meituan?

This isn’t investment advice—but here’s how I’m thinking about it.

If you believe in:

• The long-term growth of food delivery and local services,

• Meituan’s ability to stay ahead of the competition, and

• The upside potential of global expansion,

Then yes, Meituan is worth a look. But you have to be patient.

This isn’t a stock that’s going to double overnight. It’s a long-term compounder. You’d be buying a piece of infrastructure in the everyday life of millions of people.

Key Metrics I’m Watching

If you want to track how Meituan is doing, focus on these:

1. Active users and order volume – Are people still using the app regularly?

2. Profit margins – Are they getting more efficient or are costs creeping up?

3. International progress – Is Keeta growing in Brazil? Any new countries on the radar?

4. Competition updates – How fast are JD.com and others catching up?

Watch these like a hawk.

What This Means for You as an Investor

Earnings season is a great reminder that numbers are just one piece of the puzzle. A company can crush earnings and still drop if the story behind the numbers isn’t clear.

That’s why you need to:

• Always read beyond the headlines,

• Understand what’s driving growth, and

• Watch for shifts in the bigger picture, like regulation and global expansion.

Meituan has proven it can grow. Now it needs to prove it can defend that growth.

Final Takeaways

Meituan is one of China’s tech giants for a reason. It delivers real value, knows how to scale, and is willing to take risks—like going global—even when the competition is fierce.

But every investment comes with trade-offs. Even winners can face setbacks. That’s why I like to approach stocks like Meituan with a mix of curiosity and caution.

Keep learning, stay sharp, and as always—don’t follow the crowd blindly. Do your homework and think long-term.

Talk soon,

[Live Life Grow Wealth]

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.