Grab buying opportunities

After Grab's recent earnings announcement saw a larger-than-expected loss, causing the stock price to drop 12%, various analysts believed there was a buying opportunity for the business, and the average target price was $4.33. Why is this so?

1) Super application concept - In recent years, the concept of an online one-stop service for all everyday needs has become a highly sought after concept because it has created great convenience for an increasingly digital generation. From food delivery to taxis to current banking services, Grab has captured the hearts of a new generation.

2) Continuous product innovation - Grab invests heavily in R&D, which is critical to maximizing the lifetime value of individual customers by increasing the stickiness of the application.

3) Optimistic profit forecast — Grab is likely to see an improvement in profits in 2022 as the food delivery business approaches break-even levels.