Grab Holding Ltd. (NASDAQ: GRAB) stock was up 24% on Thursday after posting a better than anticipated revenue increase of 6%, with the pandemic receding across Southeast Asia.
Trading Data
On Thursday, GRAB stock soared 24.11% to $3.14 with more than 110.34 million shares traded, compared to a volume of 25.13 million shares. The stock moved within a range of $2.5550 – 3.6800 after
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Earnings Recap
Revenue was $228 million in Q1 after the ride-sharing and delivery company added sales from the Jaya Grocer platform they bought at the beginning of the year. The company topped analyst estimates of $139.2 million. Net loss reduced to $435 million as the ride-hailing company seeks to gain profitability after investing heavily to gain market share.
Monthly users grew 10% to 30.9 million following the lifting of pandemic-era restrictions across Southeast Asia. Spending per user was up 19%. The company’s ride-sharing and delivery operations are befitting of a return to normalcy, unlike other internet firms that are struggling with cooling post-pandemic online activity. Since it went public through a combination with a blank-check firm last year, Grab has struggled with growing losses and a wider tech sell-off which have weighted its stock. So in the coming weeks, investors should keep an eye on GRAB.
Key Quote
“Our first-quarter results are a testament to the resilience of Southeast Asia’s economy as we move past the worst of the pandemic restrictions. We are optimistic that our business will continue to strengthen as more countries pivot to living with Covid-19. In the quarter, we delivered strong top-line growth in deliveries as we expanded our merchant selection to give users more reasons to choose Grab. Our mobility business also rebounded and we expect it to gradually recover as Covid restrictions ease further and our active driver base increases,” said Anthony Tan, Group Chief Executive Officer and Co-Founder of Grab.
Technical Data
GRAB stock is trading below the 20-Day and 50-Day Moving averages of $2.99 and $3.22 respectively. Moreover, the stock is trading below the 200-Day moving average of $7.63.
