Meituan Shares Hit Multi-Month Low as Moody’s Trims Outlook
Shares of Meituan tumbled to their lowest level since March 2024 on Thursday after Moody’s Ratings shifted its outlook for the Chinese food-delivery giant to negative. The stock dropped as much as 5.1% in Hong Kong, eventually closing 4.5% lower at HK$84.85, as analysts warned that escalating competition and heavy investment requirements would continue to weigh on the company’s profit margins.
By Money Talk·February 12, 2026·2 min read·1 reads
The intraday slide to HK$84.30 reflects growing investor anxiety over the company's ability to maintain its dominant market position. While Meituan remains a leader in China’s gig economy, the revision from a stable to negative outlook by Moody’s Ratings signals that the path to a full recovery for its core food-delivery business is increasingly precarious.
Senior analyst Ying Wang noted in a Wednesday report that intense rivalry within the sector is forcing Meituan to sustain high levels of spending. This aggressive environment is expected to keep the company's leverage elevated for a longer period than previously forecasted. According to the report, subsidy-driven competition in the domestic market may eventually ease, though the timeline for such a shift remains unknown.
Resilience Beyond Delivery
Despite the negative outlook, Moody’s affirmed Meituan’s issuer rating, citing the company’s prudent financial management and a robust net cash position. Analysts expect the company's secondary segments—including in-store services, hotels, and travel—to maintain steady performance. These divisions are projected to provide a critical financial buffer while the primary food-delivery arm navigates its recovery.
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