Alibaba’s Ele.me and Meituan delivery couriers in Shanghai have seen diverging stock performance. Going long on Alibaba and short on Meituan has yielded 130% YTD return due to market share losses in food delivery. Alibaba’s AI boom has boosted stock while Meituan faces challenges. Price battles intensify as Alibaba expands offline services. Meituan plans to raise $3 billion in bonds for competition, expected to post a $2 billion net loss. Analysts predict Alibaba will outperform Meituan due to cash reserves and strategic flexibility. Short interest in Meituan is high, signaling potential for further decline. Despite challenges, Alibaba remains a buy with a 23% potential rise, while Meituan’s stock is cheap but uncertain.

Read more at Yahoo Finance: Buy Alibaba, Sell Meituan Pair Trade Thrives on Price War Bets