MEITU's stock price fell sharply by 5.30% during intraday trading on Monday. The decline reflects a significant pullback for the company's shares.

The movement is attributed to continued profit-taking pressure from investors following the company's strong first-quarter earnings release, which had previously driven the stock up over 30% in just four trading sessions. With that positive catalyst now fully priced in, the market is reassessing potential headwinds.

Investors are weighing intensifying industry competition and rising AI computing costs as factors that could pressure future profit margins. The stock's decline was also part of a broader sector-wide weakness in the Interactive Media and Services sector, adding to the downward pressure on MEITU's shares.