Grab (NASDAQ:GRAB) is scheduled to announce Q4 earnings results on Thursday, February 22nd, before market open.
Grab
Grab is a leading superapp in Southeast Asia, operating across the deliveries, mobility and digital financial services sectors. Serving over 500 cities in eight Southeast Asian countries – Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – Grab enables millions of people everyday to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending and insurance, all through a single app. Grab was founded in 2012 with the mission to drive Southeast Asia forward by creating economic empowerment for everyone, and strives to serve a triple bottom line: to simultaneously deliver financial performance for its shareholders and have a positive social and environmental impact in Southeast Asia.
Grab services
Grab is Extremely Close to Becoming Profitable
It's been a long wait for GRAB shareholders ever since the company went public via a SPAC IPO at a generous valuation of $40 billion. Like most SPACs, many of these companies were overvalued and took advantage of excess liquidity via COVID-10 stimulus checks and bailouts during the peak of the COVID-19 pandemic when interest rates were low.
Now, GRAB stock is still down 70% from its SPAC IPO, even though the business has made a drastic turnaround over the last 2 years.
The Grab app looks completely different now compared to just 2 years ago, when the company lost $3.5 billion in 2022. If growth continues, then Grab could achieve its first positive quarterly earnings ever by Q4 2023, which will cause many naysayers to take a closer look at the company.
For example, Uber (UBER) struggled to reach profitability for years but reached its first quarterly profit in Q2 2023. Uber is proof that ride-sharing and delivery companies can become profitable over time, despite naysayers.
Grab operates a very similar business model to Uber in Southeast Asia and could experience a similar surge in stock price if the bottom line turns black.
Grab
I think in long run, GRAB will head for profit, and I can see that the demand for grab in countries like Singapore and Malaysia is increasing rapidly. For all the reasons and analysis above, I am bullish for GRAB incoming quarter results. $Grab Holdings(GRAB)$
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