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Tag: Grab

  • Grab Holdings Limited (GRAB) stock plunged in the current market; here is why?

    Grab Holdings Limited (GRAB) stock plunged in the current market; here is why?

    Grab Holdings Limited (GRAB) declined in the current market after announcing its fourth quarter and fiscal 2021 results. GRAB values at $3.64, losing more than 30.31% compared to yesterday’s closing price. The stock closed at $5.23 at the end of the last trading session. The stock volume traded in the previous trading session was around 27.45 million shares. The current market cap of the company is about $13.73 billion.

    GRAB: Q4 and Fiscal 2021 Key Financials

    • Grab Holdings Limited’s revenue in Q4 2021 was $122 million. It is a decrease of around half compared to the revenue of $219 million in Q4 2020. 
    • Fiscal 2021 revenue was $675 million, more than the revenue of $469 million in fiscal 2020. 
    • The company’s net loss in Q4 2021 was around $1.1 billion, a massive loss compared to the net loss of $635 million in Q4 2020.
    • GRAB’s net loss in fiscal 2021 was around $3.55 billion, and profitability decreased massively compared to the net loss of $2.7 billion in fiscal 2020.
    • Grab Holdings Limited’s Q4 gross merchandise volume (GMV) increased by 26 percent year on year to $4.5 billion, while its 2021 GMV increased by 29 percent year on year to $16.1 billion.

    GRAB CEO’s Remarks

    The company’s CEO and co-founder, Anthony Tan, remarked that despite the more difficult circumstances brought on by the Delta and Omicron variants, 2021 was the company’s most incredible year ever. Growth in both GMV and Revenues, as well as in Adjusted EBITDA margins, demonstrates the super app’s robustness and increasing significance.

    GRAB 2022 Outlook

    For each quarter from Q2 through Q4 of 2022, Grab Holdings estimates GMV growth of 30-35% YoY, depending on the COVID-19 situation. By the first half of 2023, Grab is on track to break even in its core food delivery Segment Adjusted EBITDA, and by the end of 2023, it is on its way to breaking even in its deliveries Segment. A steady-state Adjusted EBITDA margin of 12% in transportation and 3 % in deliveries are long-term goals for Grab.

    Conclusion

    The stock is down due to the decline in the quarterly revenues. It is caused by the company’s massive promotional offers and higher driver incentives investments in the largest ride-hailing and food delivery business. 

  • Grab Holdings Ltd. (GRAB) stock Further Up Premarket Following Upcoming Earnings Date Announcement

    On February 09, Grab Holdings Ltd. (GRAB) announced the date for its Q4 and fiscal 2021 financial results. The company will declare the earnings release on March 3, 2022, before the opening of the market. GRAB stock has been bullish since the company announced the date. It seems investors are excited about the earnings.

    In the previous trading session, the stock added 6.53% at its closing price of $5.55 at 8.46 million shares. At the time of writing, GRAB had added a further 8.83% in the premarket on Thursday. Hence, the stock was trading at a price of $6.04 per share in the premarket, at the last check.

    More About GRAB

    Southeast Asia’s leading super-app, Grab Holdings Ltd. recently completed its business combination with Altimeter Growth Corp. (AGC). Following its combination with the SPAC, the company’s common stock commenced trading on the Nasdaq on December 02, 2021, under “GRAB”. Raising gross proceeds of US$4.5 billion from the transaction, GRAB made the largest-ever U.S. public market debut by a Southeast Asian company.  Moreover, the proceeds include a fully committed PIPE of $4.0 billion.

    Currently, the company has a market capitalization of $18.49 billion with 3.62 billion shares outstanding. In the past five days, the stock has increased by 11.45% while it lost 22.16% year to date. Furthermore, GRAB declined by a huge 60.33% last year.

    Company News

    On January 24, the company announced a fireside chat hosted by Mark Mahaney from Evercore ISI. The fireside chat was held on January 26, 2022, where Mr. Mahaney and Ming Maa (President GRAB) discussed the company’s business. They also discussed the unique super app strategy of the company and the market opportunities in Southeast Asia regarding the super app.

    On December 13, the company registered a filing with the Securities Exchange Commission. According to the filing, the company would acquire Malaysia’s top premium grocery chain Jaya Grocer Holdings Sdn. GRAB has signed an agreement with Jaya Grocer for the purchase of all of JAYA’s ordinary shares and 75% preference shares for an undisclosed amount. Further, the company also has an option for the purchase of the remaining preference shares of the grocery chain after the close of the deal. The company announced the completion of the acquisition on January 31, 2022.

    Additionally, earlier in 2021, the company also took control of Indonesian wallet provider Ovo.

  • Altimeter Growth Corp. (AGC) stock rallied in the aftermarket session: Why did it happen?

    Shares of the Altimeter Growth Corp. (AGC) stock continued the rising trend in yesterday’s aftermarket session after rising as much as 5.11% at the previous closing. AGC stock price saw a push of 5.17% to reach $13.84 a share in the late hours of Monday, on April 19, 2021. Let’s try to find the reason behind this bull.

    What’s happening?

    The momentum has been already built for the AGC stock since the spread of the news that it is going to merge with Grab, a ride-hailing and food-delivery giant of South Asia, via a definitive merger agreement. According to this deal Grab would be listed publicly in the NASDAQ via SPAC rather than traditional initial public offering and would have a market value of  $39.6 billion upon the completion of the combination with AGC stock. Furthermore Grab will get approximately $4.5 billion in cash proceeds in connection to the merger agreement.

    Grab is playing the lead role in South Asia for ride-hailing and food delivery services and growing at a fast pace. The Singapore-based startup has projected its expansion from $52 billion in 2020 to $180 billion by 2025. Despite the great rivalry with Gojek and severe COVID-19 pandemic condition that restricted the movements of individuals, Grab’s total gross merchandise volume in the last year was recorded $12.5 billion which was more than double as compared to 2018.

    Altimeter CEO Remarks:

    The CEO of the AGC stock acknowledged that Grab is one of the world’s largest and rapidly growing company clearing the digital pathway for  670 million citizens of Southeast Asia.CEO further said that the management of AGC is happy with this partnership and looking forward to the growth of its partner as well as its long-term owner.

    Conclusion:

    AGC stock is outperforming as far as market sentiment is concerned. Its largest-ever SPAC deal with Grab would prove to be fruitful in the long run for investors. Hence AGC can be a good bet for investors in the long run.