Grab's latest earnings - it looks to be a falling knife (04Mar2022)
Grab $Grab Holdings(GRAB)$ plunged 37% yesterday following its earnings report. The stock collapsed from its peak of $17.15 to the low of $3.28 as per closing yesterday. The company has not been making money and the challenge to break even looks to be steep. In lieu of the coming Fed rate hike, people will move away from such businesses (with the hope of future profits) to other value stocks.
 |
| Stock of Grab fell 37% after announcing its earnings |
Southeast Asia’s ride-hailing and delivery giant has plunged 63% since its debut, placing it among the Nasdaq Composite Index’s worst performers over that stretch. Thursday’s drop marked its biggest selloff ever after the Singapore-based company’s quarterly net loss nearly doubled from last year while revenue shrank 44%. The tumble came as 116 million shares changed hands, more than four-times the average over the past month.
Grab -- which counts SoftBank Group Corp. and Uber Technologies Inc. as its two biggest shareholders -- has struggled to gain a steady footing since its merger with Brad Gerstner’s Altimeter Growth Corp. late last year. The ride-hailing company has racked up losses since its founding and Thursday’s report showed spending on growth is taking it further from profitability.
Its net loss reached $1.06 billion in the fourth quarter, compared with the consensus estimate of $645 million. Those mounting losses have led investors to flee the stock alongside other companies that have yet to turn a profit.
Do not even go close till they have broken even. I do not see "buying the dip" for this as this looks more like "catching a falling knife". Please research before you invest.
Comments
Post a Comment