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GoTo shares nosedive on ‘external’ factors
Shares of GoTo have fallen 73.9 percent from their initial price when the delivery giant listed its stock in April, but the company maintains it is on track to profitability and that the drop in value was due to external factors.
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A Gojek rider makes a delivery in Surabaya on May 17, 2021. Gojek is now part of PT GoTo Gojek Tokopedia. (AFP/Juni Kriswanto)
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hares of GoTo have fallen 73.9 percent from their price at the time of company's public offering in April, but the delivery giant maintains it is on track to profitability and that the drop in value was due to external factors.
The falloff began in June, and rubbing salt into the wound, the stock "lock-up" period ended on Nov. 30, meaning early investors have been able to exit the investment since then.
“With the recent lock-up expiry, there’s an increase in the number of free-float shares on the market, which has triggered an increase in the amount of shares being traded,” said GoTo president Patrick Cao on Thursday.
“Possible reasons [for the sell-off] include earlier investors who entered at a lower share price realizing returns, end of fund life for financial investors, or year-end or other liquidity needs,” he added.
Cao defended the company's performance by saying that all the aforementioned variables were external, beyond the company’s control and knowledge.
GoTo claims it is expecting to be completely profitable by the first quarter of 2024, which is sooner than it had initially estimated.
Read also: GoTo set to wait another year for profit
