Meituan Dives After China Slowdown Warning Clouds Sales Surprise
- Sales rose a better-than-projected 33% in the June quarter
- Chinese consumers are still spending on meals, travel
A food delivery courier for Meituan in Beijing.
Source: Bloomberg
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Meituan fell its most in almost three months after warning that growth in its core meal delivery business will slow this quarter, in one of the clearest signs that Chinese economic turbulence is beginning to hurt the country’s internet leaders.
Executives said growth of order volumes in its core food delivery business will decelerate this quarter as the uncertainty erodes consumer sentiment, though services should remain a bright spot even in a downturn. A heat wave that enveloped parts of the country also played a part in depressing business.