The share of Grab Holding Ltd. (NASDAQ: GRAB) rose 24% on Thursday after posting a better-than-expected revenue increase of 6% as the pandemic receded across Southeast Asia.
On Thursday, GRAB stock soared 24.11% to $3.14 with more than 110.34 million shares traded, against volume of 25.13 million shares. The stock moved in a range of $2.5550 to $3.6800 after
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Revenue rose to $228 million in the first quarter after the ride-sharing and delivery company added sales from the Jaya Grocer platform it bought earlier this year . The company beat analysts’ 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.
The number of monthly users rose 10% to 30.9 million after pandemic-era restrictions were lifted across Southeast Asia. Spend per user increased by 19%. The company’s ride-sharing and delivery operations are worthy of a return to normal, unlike other internet companies struggling to cool post-pandemic online activity. Since going public through a combination with a blank check company last year, Grab has struggled with mounting losses and a broader tech selloff that has weighed on its stock. So, in the coming weeks, investors should keep an eye on GRAB.
“Our first quarter results demonstrate the resilience of the Southeast Asian economy as we weather the worst of the pandemic restrictions. We are optimistic that our business will continue to strengthen as more more countries will switch to life with Covid-19. During the quarter, we saw strong delivery revenue growth by expanding our selection of merchants to give users more reasons to choose Grab. Our mobility business has also rebounded and we expect it to gradually recover as Covid restrictions ease and our active driver base grows,” said Anthony Tan, group chief executive and co-founder of grab.
GRAB shares are trading below the 20-day and 50-day moving averages of $2.99 and $3.22 respectively. Additionally, the stock is trading below the 200-day moving average of $7.63.