Still Grabbing a lifeline?

$Grab Holdings(GRAB)$ is due to post its first-quarter earnings results before US market opens tomorrow. Despite much fanfare at its IPO debut, Its stock has been a disappointment since. Its current market price is a far cry from $13 when its shares were first traded.

While its food delivery has thrived during the onset of COVID-19 pandemic when lockdowns and movement restrictions had forced many consumers to resort to ordering food online for home delivery, lifting of many of the COVID measures has seen consumers returning to on-site dinings for socialisation. The stellar performer has since returned to earth.

Meanwhile, Grab appears to be still burning cash to defend its market lead and increase its market share in the ride hailing and delivery services amidst rising competition, as it continues to prioritise expansion over profitability.

With a saturated market crowded with multiple players, costly mergers and acquisitions may be on the cards too.

Grab is also investing heavily in its fledgling financial services that include a newly established digital bank in a joint venture with Singtel. With rising cost of funds and peaking lending rate, there may be limited room for net interest margin growth.

Hence, overall Grab appears to be between a rock and a hard place. Unless the company innovates and reinvent itself to stay ahead of competition and remain relevant post pandemic, I’m not optimistic of its share price regaining its past glory during IPO.

@TigerWire @MillionaireTiger @CaptainTiger @Daily_Discussion @TigerStars @TigerEvents 

# 💰 Stocks to watch today?(19 July)

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  • JohnnyYoung
    ·2023-05-18
    TOP

    everyone's cautiously waiting for May 2023. thats when the founders can unload

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    • pekss
      If they do, that will be a bad signal to the market!
      2023-05-18
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  • Aqa
    ·2023-05-18
    Congrats! Your post got featured! Liked, shared and comment ti support you. Stay Top my friend!👍🏻
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  • WebbBart
    ·2023-05-18

    GRAB is finally grabbing some gains today.

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  • WebbBart
    ·2023-05-18

    stock price is ready to pop!

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  • Prost
    ·2023-05-18
    Ok
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  • psk
    ·2023-05-18
    thanks
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