GOTO poor financials with increasingly bad market conditions
GOTO
shows weakness post IPO, which is no surprise given very weak financials and current market conditions.
Reported financials:
1 Jan - 31 Jul 2021: revenue 2,516,300,000,000 IDR with loss for the period 8,169,471,000,000 IDR! - loss 3.2 times the revenue!
1 Jan - 31 Dec 2020: revenue 3,327,875,000,000 IDR with loss for the period 16,735,217,000,000 IDR!
Not a single profitable year was reported in the IPO prospect.
The IPO was heavily promoted in media, but prospectus shows no substance. The revenue growth is weak, indicating the opportunity for further growth is very limited, especially post pandemic restrictions. The competition from other Asian players e.g. Shopee, Grab is also increasing. GOTO also fails competing in regional markets.
The company will be heavily impacted by the increasing prices of gasoline in Asia, where inefficient delivery of goods by motorbikes may no longer be economically viable. Customers will likely opt to using public transport more, reducing the revenue.
Disclaimer: This is my private opinion. The information is not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort.
Reported financials:
1 Jan - 31 Jul 2021: revenue 2,516,300,000,000 IDR with loss for the period 8,169,471,000,000 IDR! - loss 3.2 times the revenue!
1 Jan - 31 Dec 2020: revenue 3,327,875,000,000 IDR with loss for the period 16,735,217,000,000 IDR!
Not a single profitable year was reported in the IPO prospect.
The IPO was heavily promoted in media, but prospectus shows no substance. The revenue growth is weak, indicating the opportunity for further growth is very limited, especially post pandemic restrictions. The competition from other Asian players e.g. Shopee, Grab is also increasing. GOTO also fails competing in regional markets.
The company will be heavily impacted by the increasing prices of gasoline in Asia, where inefficient delivery of goods by motorbikes may no longer be economically viable. Customers will likely opt to using public transport more, reducing the revenue.
Disclaimer: This is my private opinion. The information is not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort.
Trade closed: target reached:
Target reached. It's very likely the stock will continue to fall. Massive drop expected on January 2023 when the 8 months lockup expires.
My opinions and other information shared is not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort.