Meituan’s sharp drop reflects intense profit pressure from fierce competition and price wars, especially with Alibaba’s rapid expansion in instant retail via Taobao Flash Sale. Meituan faces dual challenges from core business squeeze and losses in new ventures, causing its stock to plunge amid concerns over profitability and growth balance. Betting on the underdog, like Meituan, is attractive because it is the under-institutionally held player with potential for rebound; popular stocks like Nvidia may have more limited upside due to high valuations and less risk-reward favorability. Choosing the major trend, such as Nvidia, offers more stability with strong AI market growth and continued demand for GPUs, aligning with lower risk and steady gains. Thus, the underdog’s risk lies in margin and competition, while the major trend offers defense against losses.
@BillyR
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