Meituan stock plunged 12% due to a sharp profit decline triggered by an ongoing price war in the food delivery sector while Alibaba surged 12% is driven by strong growth in its cloud computing and AI divisions
The decision between betting on the underdog or following the major trend is a classic investment dilemma as the former carries higher risk but potential for big returns while the latter offers lower risk with more limited upside。。。
Tag :@Huat99 @Snowwhite
Will You Follow Major Trend or Bet on an Underdog Comeback?
@Tiger_comments：This Wednesday, $MEITUAN-W(03690)$ released its latest earnings report. Profit pressure led to a sharp plunge in its stock price. Just one day later, $Alibaba(BABA)$ reported earnings — and the highlight was its “Taobao Flash Sale” instant retail service, which reached 80 million daily orders with peaks hitting 120 million orders. That 80M number caught the market’s attention — it was exactly Meituan’s average daily orders before the food delivery wars. Meituan stock plunged 12% on earnings day. Alibaba stock surged 12% the very next day. At the earnings call, Meituan CEO Wang Xing said: “In a big competition, being the underdog is the most exciting position to be in. That’s why this is so thrilling.” But the reality is, in just four months, Taobao has essentially “built its own Meituan.” Over the long term, this self-made Meituan could synergize with Alibaba’s massive e-commerce ecosystem and unlock unlimited imagination for a one-stop consumer platform. Meituan is worth 500B RMB, but compared with Alibaba’s scale and ecosystem, it is clear who benefits more from a drawn-out battle. Taobao invested 50B RMB into instant retail. Meanwhile, Alibaba’s net profit still reached 42.4B RMB, up 76% YoY, beating expectations — thanks to its diversified portfolio. On top of that, Alibaba’s surprise announcement of launching its own AI chip overshadowed $NVIDIA(NVDA)$ weaker-than-expected results, contributing to Nvidia’s 3% drop on Friday. The value of Taobao Flash Sale goes three layers deep: Reshape the food delivery landscape → Recreate a “Meituan” within Alibaba. Boost Taobao e-commerce growth → August data shows DAU up 20% and MAU up 25%, a scale of user growth no amount of ad spend can buy. Integrate services & traditional e-commerce → Pave the way for an AI-era super consumer platform. Questions: How do you see Meituan’s sharp drop? Will you bet on the underdog or ride the surge? Why underdog? NVDA is the least institutionally held among the Mag 7. The popular one may have fewer upside potential. Risk-reward ratio may be low. Why the major trend? At least you won’t lose money on Nvidia. Leave your comments to win tiger coins~
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