To grab or not?


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!

# Grab Q3 Results: Any Thoughts?

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  • Ah Meng
    ·11-23
    TOP
    Grab... or not? So what is your conclusion? Grab is in survival mode. Like Uber, it is dipping its feet into many areas... like Amazon of the past, it needs to find something big before it runs out of money...
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    • Ah MengReplying toUltrahisham
      [Like]
      11-23
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    • Ultrahisham
      And you are correct. It is in survival mode as many other high growth cash burners are. So it has to navigate exceptionally well to survive first and then try to thrive.
      11-23
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    • Ultrahisham
      Haha….depends on your time frame and your risk profile. I won’t touch it personally coz the bear market has presented with lots of better options. 😊
      11-23
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  • I'm happy with Grab's revenue growth.
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  • DonnaMay
    ·11-26
    Hopefully, management will lead Grab to the right direction.
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  • Maria_yy
    ·11-26
    You're right, Grab has plenty of competitors.
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  • Now Grab faces a lot of uncertainty.
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  • Grab does have plenty of room to grow.
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  • DannDann
    ·11-24
    Great insightful post. Thanks for sharing 👍🏻👍
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  • Itsmeho
    ·11-24
    Thanks for the share.
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  • vinH
    ·11-24
    Thank you for sharing.
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  • Adestein
    ·11-24
    Prospect is promising but concern still not make money overall
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  • moliya
    ·11-24
    do not geap the falling knife
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  • it shld specialise in an area otherwise its too stretched
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  • Which is better, GRAB or SEA?
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  • I'd say stop doing Asian stocks in the US stock market.
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  • BlogArca
    ·11-23
    Grab is going well in SEA
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  • Gnay
    ·11-24
    K
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  • Deathflash
    ·11-24
    g
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  • 007ws
    ·11-24
    gd
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  • T2huat
    ·11-24
    ok
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  • 🙂
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