Grab is a unique proposition. It's area of operations is one where there is still much growth available. And it has established itself well in its markets as well as created a brand for itself.But in honesty, competition is stiff. Gone are the days when it can happily dish out discountsand vouchers in order to grab market share (pun intended!). It knows it cannot survive by just being a ride hailing service and that is why ithas actively diversified into food deliveries etcas well as trying to develop a superapp and partnering with Singtel as a digital bank. The aimis obvious. It wants to be an innovator in fintech. However competitors are many with $SEA(SEA)$ being a notable one.
The environment is challenging indeed due to macroeconomics. As mentioned, topline revenue growth is good but a clear path to profitability needs to be seen to entice investors. There are just too many beaten down companies which are also growing rapidly yet are already cash flow positive or profitable. These companies make more sense to investors as they are stronger from a financial stand point.
So until management makes clear their direction as well as exhibit a clear path to profitability and follows up with a solid plan and results, share prices will be range bound in my opinion.
Thanks for reading!
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