Investors show no appetite for Chinese online grocery firms that just listed in the U.S.

"Both MF and DDL are still far away from break-even points," Kevin Xiang, analyst at 86Research, told CNBC. "We think that their business models cannot generate positive unit economics nationwide."

Missfresh reported a net loss of 610.3 million yuan in the first quarter of 2021, much larger than the 194.7 million yuan net loss posted in the same period in 2020. The company has also never been cash flow positive. Dingdong had a net loss of 1.38 billion yuan in the three months ended Mar. 31, 2021. That was wider than the 244.5 million yuan net loss in the same period of 2020."Despite IPO financing, MF and DDL may run out of cash by the end of this year," Xiang said. "The pace of cash burning is faster than unit economics improvement."

In an interview with CNBC's Eunice Yoon on Tuesday, Dingdong founder Liang Changlin, said the company raised $1.3 billion earlier this year, so the money raised from the IPO "isn't that essential."

Michael Burry Warns Retail Traders About the 'Mother of All Crashes'

Per WarrenBuffett INTRINSIC VALUE formula, based on 2020 annual reports, China's tech giants such as $BABA and $BIDU are significantly overvalued by 958% and 1,519% compare to IntrinsicValue!!! Do you think other Chinese stocks are not significantly overvalued?

जल्दी जल्दी टवीट टवीट कर लो । पता नही सरकार कब बन्द कर दे टविटर की टी टी ।।।।

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