July 10, 2025 05:33 PM GMT Meituan | Asia Pacific M Idea 2Q25 preview: lower long-term margins with near-term earnings pressure | What's Changed | | | | --- | --- | --- | | Meituan (3690.HK) | From | To | | Price Target | HK$160.00 | HK$150.00 | We estimate 2Q CLC OP at Rmb8bn, -48% YoY, with food delivery + Instashopping OP to decline Rmb8bn. We expect 3Q to mark the most intense competition, driving full-year CLC OP down to Rmb30bn. Stay OW; we prefer BABA > Meituan > JD. 2Q25: We estimate CLC revenue at ...

JD.com, Inc. | Asia Pacific 2Q25 Preview - Most Affected by the Food Delivery War | What's Changed | | | | --- | --- | --- | | JD.com, Inc. (JD.O) | From | To | | Price Target | US$39.00 | US$28.00 | We expect JD to have invested over Rmb10bn in food delivery in 2Q25, leading to a 63% YoY decline in non-GAAP NP. However, we see no signs of cross-selling or other synergies from such an investment to the core EC business, given no meaningful JDR revenue growth acceleration QoQ or margin improvement. 2Q25 prev ...

Core Viewpoint - DoorDash is increasing service fees for deliveries in Seattle due to new city regulations affecting app-based worker pay and account deactivations, which the company claims are leading to higher operational costs [1][2][5]. Group 1: Service Fee Increase - The specific amount of the fee increase has not been disclosed, but it will take effect later this month, impacting customers already facing high delivery costs [2]. - This is not the first price hike; DoorDash previously implemented a flat $5 service fee following a 2022 law guaranteeing minimum wage for app-based workers in Seattle [7]. Group 2: Impact of Regulations - Seattle's law mandates that delivery workers earn nearly $30 an hour before tips and mileage, which is significantly above the minimum wage [5]. - The company has reported a substantial decline in business due to these regulations, with Dashers receiving half as many delivery offers and experiencing three times longer wait times for potential deliveries [8]. Group 3: Financial Performance - DoorDash reported operating at a loss in Seattle in 2024, despite generating $10.7 billion in revenue nationwide [10]. - Local businesses in Seattle experienced a 2% drop in revenue, contrasting with a 10% increase in cities like Denver, Portland, and San Francisco, where service fees are lower [10].

Group 1 - DoorDash has seen a significant performance increase of over 120% over the last year, approaching all-time highs, indicating strong market interest and potential growth [1] - The company is viewed as a compelling platform business with a long runway for growth, suggesting that there are still opportunities for expansion and profitability [1] - The author has a background in equity and real estate markets, emphasizing a focus on identifying long-only investment opportunities that provide safe and growing dividends [1] Group 2 - The author has extensive experience in real estate investment, having sourced over $100 million in commercial real estate investments, which adds credibility to the analysis of DoorDash [1] - The emphasis on correlation across asset classes and sectors, along with a background in economics, supports the analysis of market trends and investment strategies [1] - The article aims to provide timely analyses and strategies for investors looking to enhance their portfolios, reflecting a commitment to sharing insights on market opportunities [1]

Pershing Square Capital Management's billionaire chief has sold most of his fund's stake in Chipotle over seven years, and is now piling into his new favorite stock. For some investors, earnings season is the highlight of each quarter. This is the six-week period where most S&P 500 companies report their quarterly operating results, which gives investors a good bead on the health of corporate America and Wall Street. But an argument can be made that the quarterly filing of Form 13Fs with the Securities and ...

Investment Rating - The report maintains a "Buy" rating on Alibaba, Meituan, and PDD, while highlighting JD as a potential multiple repair/re-rating story [14][15][18]. Core Insights - The competition intensity among eCommerce players, particularly Alibaba, JD, and Meituan, in food delivery and instant shopping has escalated, with an estimated aggregate investment of Rmb25 billion (approximately US$3 billion) in the June quarter alone [9]. - The report estimates a total addressable market (TAM) of Rmb2.4 trillion for food delivery and Rmb1.5 trillion for instant shopping by 2030, driven by increased platform subsidies and user acquisitions [4][40]. - The ultimate goal for these companies is to become the "everyday app" for transactions, facilitating cross-selling across various goods and services [12][56]. Summary by Sections Market Overview - The food delivery competitive landscape is rapidly evolving, with Meituan achieving 90 million daily orders and Alibaba's Taobao Instant Commerce reaching 60 million peak daily orders [34]. - The report anticipates a re-acceleration of on-demand eCommerce penetration in China, projecting a TAM of Rmb1.5 trillion by 2030 [35][42]. Financial Projections - The report outlines three scenarios for food delivery and instant shopping, with a base case projecting a 5.5:3.5:1 market share between Meituan, Alibaba, and JD [10][27]. - Estimated losses for Alibaba and JD in food delivery are projected at Rmb-41 billion and Rmb-26 billion, respectively, over the next 12 months [9]. Company-Specific Insights - JD is expected to disproportionately benefit if it stabilizes its food delivery scale, while PDD is positioned to have a more resilient profit setup due to its lack of direct involvement in the food delivery competition [10][18]. - Meituan's strategic pivot towards centralized kitchens aims to enhance food safety and reduce delivery costs, which could improve long-term unit economics [11][54]. User Engagement and Traffic - The report notes a significant increase in daily active users (DAU) for both JD and Taobao, with a combined increase of 50 million DAU to approximately 410 million [12][56]. - The consolidation of offerings into a single app is seen as a strategy to monetize increased engagement from high-frequency food delivery [57].

China has the world's best and cheapest food delivery apps and now it's only getting cheaper. JD. com, the online retail giant, launched his takeout business in March to challenge rivals Alibaba and Mtoan, which have together dominated the $80 billion plus market for about a decade.Even JD's billionaire founder, Richard Louu, spent a day personally handing out food to surprise customers near its headquarters in Beijing. PR stunt aside, the company is giving away 1.4% 4 billion in coupons to users, forcing M ...

Core Insights - DoorDash Inc. (DASH) experienced a significant trading signal known as Power Inflow, indicating a potential uptrend in its stock price at $216.06, which is crucial for traders following institutional movements [2][6] - The Power Inflow is interpreted as a bullish signal by active traders, suggesting a favorable market condition for DoorDash [3][4] Trading Signal Analysis - The Power Inflow occurred within the first two hours of market open, which typically helps gauge the stock's overall direction for the remainder of the trading day, driven by institutional activity [4] - Following the Power Inflow, DoorDash's stock reached a high price of $221.31 and a close price of $220.59, resulting in returns of 2.4% and 2.1% respectively, highlighting the importance of a structured trading plan [8] Order Flow Analytics - Order flow analytics, which involves analyzing the flow of buy and sell orders, provides insights into market conditions and helps traders identify potential trading opportunities [3][5] - Incorporating order flow analytics into trading strategies can enhance trading performance, although effective risk management remains essential for capital protection [5]

JD.com (JD) shares have plunged 18.5% in the trailing three months, underperforming the Zacks Internet - Commerce industry’s growth of 8% and the Zacks Retail-Wholesale sector’s return of 7%. JD’s underperformance in its shares is driven by a mix of structural and operational challenges that continue to weigh on investor sentiment. While revenue growth remains solid, which increased 16% year over year in the first quarter of 2025, the company is grappling with thinning margins across its core and emerging b ...

RENO, Nev., June 12, 2025 (GLOBE NEWSWIRE) -- GreetEat Corporation (OTC: GEAT) is proud to announce that it has officially filed a patent application for its innovative core technology: “Video Conferencing with Food Delivery Vouchers.” The company is now patent pending, marking a major milestone in its mission to transform the way people meet, connect, and collaborate in virtual environments. This proprietary technology combines two high-growth sectors video conferencing and on-demand food delivery into a u ...