Grab: Humble Pie delivery
As a holder of $Grab Holdings(GRAB)$
Some of you may ask why, despite its cash burn of more than $100 mil and have reduced capital. Some of you may ask why I'm investing in a loss making company. Some of you may also say that I am speculating, not investing, especially since at this very moment, I am only anticipating that it will make a profit, of which, the chance doesn't seem high. I totally understand the doubt, in spite of Grab having pushed their break even (non-IRFS) date to Q4 this year.
Here's why. I think the company as a whole has set itself apart from the rest. I know the market is saturated and will be more saturated with Private Transport Companies. But I feel that Grab has ventured into many potential areas of growth, of which will make lives easier, such as easier payment methods (BNPL, Grabpay) and easier loans (GXS, but on a limited release). From this perspective, I feel that Grab has an edge over its competitors. Not so much just its financial branch, but with the potential applications of the Superapp.
As of today, we can see the food delivery reaching breakeven point, while of course, its financial sector will take sometime (2025-26?). But I see potential and that's what I feel is the key to investing. Do I have to wait? Yes and not only that, I have to weather the fluctuations of the price.
Honestly, I remember a time last year when the price was at $2.19. That was painful. When it reached $3.50 last year, I sold but bought it back again. Despite this, with its current leadership, I think Grab is on the right track. Don't get me wrong, it takes time and yes, it is slow. But my opinion is it will reach its destination. Will I be right? I don't know. Ask me again at the end of the year.
*bookmark*
P.s. Sorry I haven't been writing much. I have been swamped with studies. I just wanted to make this post to show that I haven't abandoned ship. Was I wrong about Grab? I could be.
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Surprised that you are studying, is it for work or?
My price target 2.85, 2.65, 2.2
if tjere is broad market selloff Grab will go and build a base somewhere near here