Moving foward, the analysts expect GoTo to be the biggest beneficiary of Indonesia’s potential restrictions on TikTok Shop. On Sept 25, Indonesia revealed that it is working on addressing concerns about how TikTok Shop had negatively impacted the micro, small and medium sized businesses in the country. The government suggested that TikTok should only be a social media platform instead of a medium for conducting business.
UBS analysts Navin Killa, Marissa Putri and Joshua Tanja have upgraded GoTo to “buy” from “neutral” previously on the back of improving operational environment.
Noting the slowdown in gross merchandise volume (GMV) growth in the past couple of quarters due to competition, the analysts expect GoTo’s gross transaction volume (GTV) to show stabilisation in 3QFY2023, with gradual recovery from 4QFY2023 onwards. UBS also believes that the concerns over the slowdown in GTV have been priced in.
