Barclays noted in its latest report that Meituan's total revenue for Q2 increased by 13.9% year-over-year to RMB 104.6 billion. The operating profit margin for its core local commerce segment turned positive at 7.9%, but the adjusted net profit of RMB 2.5 billion was still 41.1% lower than Barclays' expectations. Analysts believe that Alibaba's return to the instant retail sector has permanently altered the industry's competitive landscape, which will continue to suppress Meituan's profit ceiling. Furthermore, Meituan has not yet presented an AI narrative exciting enough for the market, limiting its stock's revaluation potential. Barclays significantly cut its adjusted EBITDA forecast for Meituan in 2026 by 54.5% to RMB 7.8 billion and maintained a target price of $10, suggesting that while its stock offers defensive qualities, its upside is limited.