Grab Holdings Limited (GRAB)

[tw0122]

The Put shorting party that never ends in another Ponzi SPAC.


Grab reported earnings for the first time as a publicly traded company, namely a colossal loss of $1.06 billion for Q4, nearly double the loss from a year ago. For the whole year, Grab lost an inexplicable $3.45 billion, up from a loss of $2.61 billion in the prior year.

How can you lose $6.1 billion in two years by delivering food and driving people around? That was a rhetorical question.

Revenues plunged by 44% to $122 million in Q4; and for the full year by 44% to $675 million. As you’d expect, there’s a big yada-yada-yada story to make this fiasco sound better, including that the company spent a huge amount on incentives, discounts, and promotions to get consumers to use its services and to get drivers to do the work. These incentives are deducted from revenues.

Upon the news of exploding losses, shares crashed 37% and are down by 81% from their high on November 12, 2021, just before the SPAC merger was finalized. The boom in SPACs that started in 2020 has, as everyone knew it would, turned into one of the great scams (data via YCharts):