In December 2021, Grab headquartered in Singapore was listed in United states via a SPAC or “blank cheque” arrangement. Ever since its listed, its stock price has been on a downward trend due to widening losses and a broader sell-off in the technology sector.
Why did grab stock price jump?
An improvement in South-East Asia covid 19 situation boosted revenue at Grab by 6%, which is better than expectation. The business saw a 10% increase in monthly consumers. In addition, spending per user increased by 19%. In particular, Grab’s car-hailing and delivery services have benefited greatly.
Also, Following a period of strong investment in the pursuit of market dominance, Grab’s net loss has improved with focus on profitability.
with the positive report, Grab share price jumped by 24% on Thursday (19th may) which was its greatest rise since listing.
Grab stock price outlook
Analyst thinks that Grab is on pace for significant sales growth as the transportation sector recovers from pandemic impacts and strong momentum across delivery and financial services.
Ride reservations are expected to rebound as Covid 19 restriction are eased in South-east Asia.
Lastly, growth in online food and grocery delivery is expected to be bolstered by the recent acquisition of Jaya Grocer in Malaysia.
Source: Straits times