As of end-April, GoTo’s shares were trading on the Indonesia stock exchange well below their IPO price. What’s more, the greenshoe option for price stabilisation has been exhausted. However, the stock’s apparent weakness is not due to the company’s worsening fundamentals per se as GoTo’s growth rates remain elevated, take-rates continue to improve, and profitability looks increasingly possible as losses decline.
What will help the stock price in the long term will be the strong execution of the company’s growth strategy including bringing about synergies between its various segments — Gojek, Tokopedia, GoTo Financial, and Bank Jago.