Why Grab Stock Plummeted Today
Grab (NASDAQ: GRAB) stock plummeted by 14.9% Thursday, according to data from S&P Global Market Intelligence, following the release of a mixed first-quarter report.
While sales and earnings came in ahead of the market's expectations, the Singapore-based ride-hailing and delivery company's gross merchandise volume (GMV) came in lower than anticipated. GMV grew just 3% year over year in the quarter, and concerns that the platform is losing momentum sent the stock tumbling.
Grab posted a loss of $0.06 per share on revenue of $525 million, while the average analyst estimate had called for a loss of $0.07 per share on revenue of $505 million. However, though sales grew by roughly 130% year over year, the market mostly appears to have focused on the company's relatively weak GMV growth.
Source Fool.com
