What happened
Shares of Grab Holdings (NASDAQ: GRAB), a ride-sharing and food-delivery company, tumbled today after the company reported mixed results for its second quarter. While the company beat Wall Street's consensus top-line estimate, Grab's loss in the quarter was larger than expected.
The company also issued gross merchandise volume (GMV) guidance that disappointed investors. As a result, the food delivery stock was down by 12.5% as of 3:11 p.m. ET.
So what
Grab's sales increased 79% from the year-ago quarter to $321 million, which was good enough to outpace analysts' average estimate of $273.1 million. The company said that strong sales from its mobility and deliveries segments were the reason for the spike in total revenue.
Image source: Getty Images.
The company posted a non-GAAP loss per share of $0.15 in the quarter, which was far better than its loss of $2.89 in the year-ago quarter, but fell short of Wall Street's consensus estimate of a loss of $0.10.
But investors may have been the most disappointed with the company's revised full-year outlook for its gross merchandise GMV.
The company now expects 2022 GMV growth in the range of between 21% to 25% -- equal to about $19.8 billion at the midpoint of guidance -- down from its previous forecast of growth between 30% to 35%.
Now what
Grab's management said in a press release that slower GMV growth is the result of a strong U.S. dollar and because people continue to dine out more rather than use Grab's food-delivery service.
Investors have become impatient over the past year with high-growth companies that aren't profitable. And with the company cutting its GMV forecast for the the full-year, some investors appear to be content to sit on the sidelines with this stock.
10 stocks we like better than Grab Holdings Limited
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Grab Holdings Limited wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 17, 2022
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Grab Holdings Limited. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
